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Tanzania’s Annual Inflation Slightly Down to 4.8% in February 2023

Tanzania inflation February 2023

The National Bureau of Statistics of Tanzania (NBS) revealed that the Annual Headline Inflation Rate for the month of February 2023 has decreased to 4.8% from 4.9% recorded in January 2022.

Meanwhile, the overall index went up from 106.20 recorded in February 2022 to 111.28 in February 2023.

Food and Non-Alcoholic Beverages Inflation Rates

The Food and Non-Alcoholic Beverages Inflation Rate for February 2023 has decreased to 9.6% from 9.9% that was recorded in January 2023.

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On the other hand, the Annual Inflation Rate for all items without food and non-alcoholic beverages for February 2023 has also decreased to 2.8% from 3.0% that was recorded in January 2023.

Changes in Tanzania National Consumer Price Indices (NCPI) for February 2023, (2020 = 100)

Tanzania Monthly Inflation Rate – February 2023

The National Consumer Price Index between January 2023 and February 2023 has increased by 0.4%.

The increase in the overall index is attributed to a price increase for some food and non-food items.

Some food items that contributed to an increase in the index include: wheat grains by 1.2%, rice by 5.8%, sorghum grains by 0.7%, finger millet grains by 3.3%, wheat flour by 1.2%, sorghum flour by 1.9%, maize flour by 2.4%, fresh fish by 0.4%, dried sardines by 0.7%, fruits by 0.6%, groundnuts by 4.4%, vegetables by 1.7%, sweet potatoes by 6.7%, fresh cassava by 4.0%, cocoyam by 1.4%, dried beans by 2.8%, dried lentils by 0.8%, dried peas by 1.0%, dried cowpeas by 1.0%, cassava flour by 5.6% and soft drinks (soda) by 0.7%.

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Some Non-Food items that contributed to an increase in the index include: garments for women (0.3%), school uniforms (0.4%), footwear for men (0.5%), firewood (2.3%), charcoal (1.6%), education services (0.4%) and accommodation services in hotels and guest house (2.1%)

In 2022 (January to December) the average annual headline inflation in Tanzania was 4.3%. In 2021 it was 3.7% and 3.3% in 2020.

However, the trend is clearly upward, with annual inflation reaching a five-years in October 2022 at a rate of 4.9% and slightly going down only in December 2022 at 4.8%.

Still, it remains within the target range of 3.0%-5.0% over the medium term included in the Tanzania Five-Year Development Plan (FYDP III). It also falls below the EAC inflation target of 8% and the SADC region which ranges between 3% and 7%.

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