Tanzania Inflation

Tanzania’s headline inflation has been brought down to 4.5% in September 2016 from an average of 12.6% during 2011.

Tanzania reached a historical low inflation rate of 4% in January 2015. After that the country has experienced inflationary pressure with a peak of 6.8% in December 2015.

Since then, inflation in Tanzania has been steadily decreasing, reaching 5.1% in April 2016, slightly increasing to 5.5% in June, and again, falling to 5.1% in July, 4.9% in August, and 4.5% in September 2016.

The steady decrease is attributed to Tanzania’s tight monetary policy, exchange rate stability and improvement in food supply.

The Bank of Tanzania (BOT) has a single-policy objective of maintaining price stability through regulating the quantity of money in circulation and the credit supplied to the economy.

BOT’s 2016–2017 monetary policy aims at keeping inflation close to 5%. Achievement of this target will be supported by low global oil prices, improvement in domestic power and food supply, and continued stability in the value of the Tanzanian Shilling, BOT indicates.