Tanzania’s Annual Inflation Holds at 3.1% in January 2025, Food Inflation Rises to 5.3%

Tanzania’s annual inflation rate held steady at 3.1% in January 2025, the same as in December 2024, while food inflation rose to 5.3% from 4.6%. Non-food inflation decreased to 2.1% from 2.5%. The National Bureau of Statistics attributes the rise in food prices to higher costs of key items such as finger millet grains (+8.4%), dried lentils (+5.5%), and groundnuts (+4.8%).

The National Bureau of Statistics of Tanzania (NBS) revealed that the annual headline inflation rate for the year ending January 2025 has stagnated at 3.1 % as it was recorded in December 2024.

The overall index went up from 114.09 in January 2024 to 117.57 in January 2025.

Food Inflation

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The Food and Non-Alcoholic Beverages Inflation Rate for January 2025 increased to 5.3 % from 4.6 % in December 2024.

Non-Food Inflation

On the other hand, the Annual Inflation Rate for all items without food and non-alcoholic beverages for January 2025 has decreased to 2.1 % from 2.5 % which was recorded in December 2024.

Core Inflation

Computation of the Core Index excludes items with volatile prices that are unprocessed food energy and utilities except maize flour.

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The exclusion of volatile prices from the total NCPI provides a more stable Inflation Rate figure for policymakers.

The Core Index covers 297 items and the share of weight to total NCPI weight is 73.9 %.

The inflation rate for the Core Index in January 2025 has decreased to 2.7 % from 2.9 % recorded in December 2024.

Monthly Consumer Price Index December 2024 – January 2025

The National Consumer Price Index between December 2024 and January 2025 has increased by 0.6 %.

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

Some food items that contributed to an increase in the index include: – wheat grains by 1.0 % rice by 1.2 % finger millet grains by 8.4 % maize flour by 2.9 % bread and bakery products by 2.1 % traditionally bred live chicken by 3.3 % goat meat by 3.7 % fresh fish by 1.3 % raw milk of cattle by 2.4 % oils and fats by 1.6 % groundnuts by 4.8 % vegetables by 1.7 % sweet potatoes by 4.2 % dried beans by 2.7 % dried lentils by 5.5 % and dry cassava by 3.9 %.

Some Non-Food items that contributed to an increase in the index include: – alcoholic beverages and tobacco by 1.4 % garments for men by 1.3 % school uniforms by 1.9 % firewood by 2.7 % and school fees by 2.9 %.

Changes in Tanzania National Consumer Price Indices (NCPI) for January 2025, (2020 = 100)

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