Inflation

Tanzania Inflation Rate 2012-June-2021

Tanzania Inflation

In the first semester of 2021, the average inflation rate in Tanzania was 3.3% and remained well within the range set in the 3rd Tanzania Five-Year Development Plan (FYDP III) between 3.0% and 5.0% over the medium term.

The Plan also indicates that the annual rate of inflation has remained in a single-digit range averaging 4.4% over the past four years, slightly below the 2nd Tanzania Five-Year Development Plan (FYDP II) projection of 5% per annum.

The headline inflation declined dramatically in the last decade, from an annual average of 16% in 2012 to 3.3% in the first semester of 2021.

Generally, the fall has been on account of improved food supply in the domestic market and neighboring countries, stability of global oil prices, and prudent fiscal and monetary policies.

In July 2021, the annual headline inflation rate of Tanzania increased to 3.8% from 3.6% recorded in June 2021.

This is the highest since the same level of inflation was reached in November and December 2019.

The overall index went up from 100.49 recorded in July 2020 to 104.32 in July 2021.

During the same period, the annual inflation rate of neighboring countries Kenya and Uganda was 6.4% and 2.1% respectively.

The World Bank (WB) forecasts that in 2021 inflation will remain stable at 3.5% and estimates that Tanzania’s current low and stable headline inflation is favored by low domestic food prices.

Latest update: 11th August 2021

Sources: Tanzania National Bureau of Statistics (NBS), Tanzania Ministry of Finance, World Bank (WB).