Economy

Inflation edges up to 3.3pc on rising food prices

Dar es Salaam. Tanzania’s annual inflation rate rose slightly to 3.3 percent in the year ending March 2025, up from 3.2 percent recorded in February, the National Bureau of Statistics (NBS) said today, April 8, 2025.

The marginal increase has been attributed largely to rising prices of food items, with a number of staples recording double-digit inflation.

According to the NBS, several key food commodities experienced significant year-on-year price increases.

These include finger millet, which rose from 28.7 percent to 32.5 percent, and raw groundnuts, which surged from 17.4 percent to 25.1 percent.

Beef prices went up from 20.3 percent to 21.8 percent, while fresh fish rose from 14.3 percent to 19.9 percent.

Other items that saw notable increases were maize (from 8.4pc to 9.1pc), live chicken (from 9.9pc to 12.9pc), unprocessed cow milk (from 6.8pc to 8.0pc), and dry peas (from 13.4pc to 21.8pc).

The rate of inflation for food and non-alcoholic beverages rose to 5.4 percent in March, from 5.0 percent a month earlier.

However, core inflation—which excludes food and soft beverages—fell slightly to 2.3 percent, down from 2.4 percent in February.

This indicates that price pressures in the non-food sectors remained generally stable during the period.

Regional picture

Inflation trends across East Africa were mixed.

In Uganda, annual inflation eased to 3.4 percent in March, down from 3.7 percent in February.

Kenya, meanwhile, recorded a marginal increase, with the rate rising to 3.6 percent from 3.5 percent.

Despite the increase, Tanzania’s headline inflation remains within the medium-term target set by the Bank of Tanzania.

However, analysts have warned that continued volatility in food prices could put pressure on household budgets, particularly among low-income earners.

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