Tanzania Inflation Rises to 4.3% in August 2026 as Transport Hits 13.8%

Tanzania’s annual headline inflation rose to 4.3% in August 2026, up from 4.2% recorded in July, according to data released on 08th September, 2026, by the National Bureau of Statistics (NBS).

The figure is measured by the National Consumer Price Index (NCPI), which tracks price changes across a fixed basket of 383 goods and services, comprising 132 food and non-alcoholic beverage items and 251 non-food items, with prices collected from all 26 regional headquarters on the Tanzanian mainland.

The overall NCPI rose from 119.77 in August 2025 to 124.93 in August 2026, reflecting a continued upward trend in the general price level.

The annual Headline Inflation Rate fluctuated between 3.2% and 4.3% throughout the 12-month period from August 2025 to August 2026, with the 4.3% recorded in August 2026 being the highest rate over the period.

On a monthly basis, the NCPI edged up from 124.85 in July 2026 to 124.93 in August 2026, a rise of 0.1%.

Food and Non-Alcoholic Beverages

Food and Non-Alcoholic Beverages inflation, the category with the highest weight in the basket at 28.2%, eased to 3.7% year-on-year in August 2026, from 4.1% recorded in July 2026.

On a monthly basis, food prices declined by 0.3% between July and August 2026, with the index falling from 135.79 to 135.36.

Despite the overall monthly decline, several food items recorded price increases, including live poultry (4.2%), fresh groundnuts (2.4%), fresh fish (2.3%), chicken egg (2.2%), rice (1.9%), dried sardines (1.4%), cooking oils (0.9%), wheat flour (0.7%), cow meat (0.6%), meat of chicken (0.6%), spaghetti (0.5%), sugar (0.5%), industrial fruit juices (0.8%), sweet potatoes (0.2%), and soft drinks such as soda and energy drinks (0.2%).

Non-Food Inflation

The inflation rate for all items excluding food and non-alcoholic beverages rose to 4.6% year-on-year in August 2026, up from 4.2% recorded in July 2026, signaling broadening price pressures in non-food categories.

The following categories contributed to non-food price movements during the month.

Transport

Transport recorded the highest annual inflation rate among all main groups at 13.8%, with a weight of 14.1% in the NCPI basket.

Its monthly index rose marginally from 136.11 in July 2026 to 136.18 in August 2026, a monthly increase of 0.1%.

Housing, Water, Electricity, Gas and Other Fuels

The Housing, Water, Electricity, Gas and Other Fuels category, the second-largest component of the basket with a weight of 15.1%, recorded annual inflation of 2.5%, with its index rising from 120.73 in July 2026 to 121.08 in August 2026, a monthly increase of 0.3%.

Monthly price increases within this category included materials for the maintenance and repair of the dwelling such as cement and iron sheets (1.9%), charcoal (1.7%), firewood (1.3%), and gas for household consumption (0.4%).

Clothing and Footwear

Clothing and Footwear recorded annual inflation of 1.8%, with its index rising from 116.69 in July 2026 to 116.89 in August 2026, a monthly increase of 0.2%.

Individual items within the category recording monthly price increases included clothing materials (1.4%), garments for men, women and children (0.2%), and footwear for men (0.1%).

Restaurants and Accommodation Services

Restaurants and Accommodation Services recorded annual inflation of 3.0%, with its index rising from 120.51 in July 2026 to 120.79 in August 2026, a monthly increase of 0.2% driven by food, non-alcoholic beverages and alcoholic beverages provided by hotels and restaurants (0.2%).

Furnishings, Household Equipment and Routine Household Maintenance

Furnishings, Household Equipment and Routine Household Maintenance recorded annual inflation of 2.6%, with its index rising from 118.90 in July 2026 to 119.39 in August 2026, a monthly increase of 0.4%.

Monthly price increases within this category included household cleaning and maintenance products such as laundry soap (2.3%) and household furniture such as sofa sets, beds, dining chairs and cupboards (0.4%).

Personal Care, Social Protection and Miscellaneous Goods and Services

Personal Care, Social Protection and Miscellaneous Goods and Services recorded annual inflation of 3.3%, with its index at 122.26 in August 2026 from 122.21 in July 2026, supported by goods and services for personal care (1.4%).

Alcoholic Beverages and Tobacco

Alcoholic Beverages and Tobacco recorded annual inflation of 1.5%, with its index easing slightly to 114.62 in August 2026 from 114.67 in July 2026, with no notable monthly change.

Health

Health recorded annual inflation of 1.5%, with its index at 111.14 in August 2026 from 111.12 in July 2026, with no notable monthly change.

Education Services

Education Services recorded annual inflation of 3.2%, with its index rising from 115.29 in July 2026 to 115.55 in August 2026, a monthly increase of 0.2%.

Information and Communication

Information and Communication recorded annual inflation of 1.5%, with its index rising from 106.90 in July 2026 to 107.88 in August 2026, a monthly increase of 0.9%.

Recreation, Sport and Culture

Recreation, Sport and Culture recorded annual inflation of 0.7%, with its index rising from 111.72 in July 2026 to 111.98 in August 2026, a monthly increase of 0.2% linked to goods and services for recreation, sport and culture (0.2%).

Insurance and Financial Services

Insurance and Financial Services recorded the lowest annual inflation among all main groups at 0.2%, with its index easing to 102.58 in August 2026 from 102.60 in July 2026.

Core and Supplementary Indices

The Core Inflation Rate, which excludes volatile items such as unprocessed food, energy, and utilities, with the exception of maize flour, rose to 4.1% in August 2026, up from 3.9% recorded in July 2026.

The Core Index covers 297 items representing 73.9% of the total NCPI weight and provides policymakers with a more stable measure of underlying price trends.

The Non-Core Index, which captures the more volatile components of the basket, stood at 4.8% year-on-year in August 2026, with a monthly decrease of 0.4%.

The Energy, Fuel and Utilities Index recorded annual inflation of 8.5%, with a monthly increase of 0.1%, reflecting continued upward pressure from fuel prices.

The Services Index rose by 5.9% year-on-year and by 0.2% month-on-month, while the Goods Index recorded annual inflation of 3.5% with no notable monthly change.

The Education Services and Products Ancillary to Education Index recorded annual inflation of 1.8%, while the All Items Less Food and Non-Alcoholic Beverages Index rose by 4.6% year-on-year and by 0.2% month-on-month.

The next NCPI release, covering September 2026, is scheduled for 08th October, 2026.