Tanzania’s inflation rises slightly on higher food prices

kariakoo

Traders and buyers at the Kariakoo Market in Dar es Salaam, Tanzania. 

Photo credit: Pool

Tanzania has recorded a slight increase in headline inflation, driven primarily by rising food prices.

According to the latest data from the National Bureau of Statistics (NBS), the inflation rate rose to 3.2 percent in February 2025, from 3.1 percent in January.

NBS figures released this week show that the prices of key staples saw notable increases – rice rose by 3.8 percent, finger millet grains by 10.1 percent, maize grains by 1.8 percent, sorghum flour by 4.0 percent, maize flour by 2.6 percent, and fresh beef by 0.8 percent.

The overall Consumer Price Index (CPI) increased by 0.6 percent between January and February, further highlighting inflationary pressures.

Other food products that saw price increases include cooking oil (2.4 percent), fruits (2.6 percent), groundnuts (4.9 percent), vegetables (1.3 percent), potatoes (2.5 percent), sweet potatoes (2.9 percent), dried beans (3.5 percent), dried lentils (2.0 percent), cowpeas (3.7 percent), and cassava flour (1.4 percent).

The rise in food prices has partly been attributed to increased demand ahead of the start of the month of Ramadan, during which food consumption patterns shift due to daily fasting, evening feasts, and food donations to the underprivileged.

In response, Prime Minister Kassim Majaliwa has urged traders to avoid unjustified price increase during the fasting period in March.

Fuel price increases

Inflationary pressures have also been felt in the energy sector. The Energy and Water Utilities Regulatory Authority (Ewura) released new fuel price caps for March, showing a significant increase in the cost of petrol, diesel, and kerosene.

Petrol prices in Dar es Salaam rose to Tsh2,996 ($1.03) per litre, up from Tsh2,820 ($0.97) in February, marking a 6.27 percent increase. Diesel is priced at Tsh2,885 ($0.99) per litre, up from Tsh2,703 ($0.93), a 6.73 percent rise. Kerosene saw the sharpest increase, now retailing at Tsh3,036 ($1.05) per litre, compared to Tsh2,710 ($0.94) last month, a 12.02 percent surge.

Ewura’s Director General, James Mwainyekule, attributed the price increases to global fuel market trends and currency fluctuations.