Tanzania Inflation Eases to 4.0% in June 2026 as Food Prices Cool but Transport Hits 13.6%

Tanzania’s annual headline inflation eased to 4.0% in June 2026, down from 4.2% recorded in May, according to data released on July 8, 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 collected from households in all 26 regions of mainland Tanzania and serves as a key indicator for investors and businesses monitoring the cost environment in the country.

The overall NCPI rose from 120.18 in June 2025 to 125.04 in June 2026, reflecting a gradual upward trend in the overall price level.

The annual Headline Inflation Rate fluctuated between 3.2% and 4.2% throughout the 12-month period from June 2025 to June 2026, before easing to 4.0% in June 2026.

On a monthly basis, the NCPI increased marginally from 124.90 in May 2026 to 125.04 in June 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%—dropped sharply to 4.1% year-on-year in June 2026, from 5.6% recorded in May 2026.

On a monthly basis, food prices declined by 0.7% between May and June 2026, with the index falling from 137.93 to 136.92.

Despite the overall monthly decline in food prices, several food items recorded monthly price increases, including sorghum grains (5.1%), dried lentils (3.8%), dried peas (3.6%), dried sardines (3.5%), sorghum flour (4.5%), poultry live (3.7%), fresh cassava (2.9%), fresh fish (2.7%), flour of cassava (1.9%), soft drinks (1.7%), wheat flour (1.3%), irish/round potatoes (0.7%), bottled drinking water (0.6%), dried cowpeas (0.3%), raw milk of cattle (0.3%), pasta products (0.2%), and meat of poultry (0.1%).

Non-Food Inflation

The inflation rate for all items excluding food and non-alcoholic beverages rose to 4.0% year-on-year in June 2026, up from 3.6% recorded in May 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 13.6%, up from 11.9% in May 2026, with a weight of 14.1% in the NCPI basket.

Its monthly index rose from 133.80 in May 2026 to 135.98 in June 2026, a monthly increase of 1.6%.

Non-food items in this category contributing to monthly price increases included motorcycle/bodaboda fare (7.6%), bus fare (3.1%), taxi fare (2.6%), and diesel (2.6%).

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 1.2%, with its index rising from 119.96 in May 2026 to 120.74 in June 2026, a monthly increase of 0.7%.

Monthly price increases within this category included kerosene (4.5%), gas (4.3%), charcoal (3.0%), products and materials for maintenance of the dwelling (1.0%), and actual rentals paid by tenants (0.2%).

Clothing and Footwear

Clothing and Footwear recorded annual inflation of 1.3%, with its index at 116.42 in June 2026 from 114.88 in June 2025, and no monthly change overall.

Individual items within the category recording monthly price increases included clothing materials (1.1%), footwear for children (0.3%), footwear for women (0.2%), and footwear for men (0.1%).

Restaurants and Accommodation Services

Restaurants and Accommodation Services recorded annual inflation of 1.9%, with its index rising to 119.56 in June 2026 from 117.31 in June 2025, with no monthly change recorded in June 2026.

Furnishings, Household Equipment and Routine Household Maintenance

Furnishings, Household Equipment and Routine Household Maintenance recorded annual inflation of 2.5%, with its index at 118.48 in June 2026 from 115.61 in June 2025, with no monthly change recorded in June 2026.

Personal Care, Social Protection and Miscellaneous Goods and Services

Personal Care, Social Protection and Miscellaneous Goods and Services recorded annual inflation of 3.6%, with its index rising to 122.34 in June 2026 from 118.11 in June 2025, and a monthly increase of 0.1%.

Alcoholic Beverages and Tobacco

Alcoholic Beverages and Tobacco recorded annual inflation of 1.9%, with its index declining slightly to 114.49 in June 2026 from 114.66 in May 2026, and a monthly change of -0.1%.

Health

Health recorded annual inflation of 1.3%, with its index at 111.04 in June 2026 from 109.56 in June 2025, with no monthly change recorded in June 2026.

Education Services

Education Services recorded annual inflation of 2.7%, with its index unchanged at 115.18 in June 2026 from May 2026, and an annual rise from 112.16 in June 2025.

Information and Communication

Information and Communication recorded annual inflation of 0.9%, with its index at 107.17 in June 2026 from 106.25 in June 2025, with no monthly change recorded in June 2026.

Recreation, Sport and Culture

Recreation, Sport and Culture recorded the lowest annual inflation among all main groups at 0.5%, with its index at 111.72 in June 2026 from 111.11 in June 2025, and a monthly decline of 0.2%.

Insurance and Financial Services

Insurance and Financial Services recorded the lowest annual inflation among all categories at 0.2%, with its index unchanged at 102.61 in June 2026 from May 2026, with no monthly change recorded in June 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 3.7% in June 2026, up from 3.4% recorded in May 2026, signaling continued build-up of underlying price pressures.

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 June 2026, with a monthly decrease of 0.4%.

The Energy, Fuel and Utilities Index recorded annual inflation of 6.3%, with a monthly increase of 1.5%, reflecting continued upward pressure from fuel prices.

The Services Index rose by 5.4% year-on-year and by 0.7% month-on-month, while the Goods Index recorded annual inflation of 3.3% with a monthly decline of 0.2%.

The Education Services and Products Ancillary to Education Index recorded annual inflation of 1.6%, while the All Items Less Food and Non-Alcoholic Beverages Index rose by 4.0% year-on-year and by 0.5% month-on-month.

The next NCPI release, covering July 2026, is scheduled for August 10, 2026.