Tanzania’s inflation increased to 3.2% in February 2025, largely driven by higher food prices amid seasonal demand for Ramadan. Key staples such as rice and finger millet saw significant price increases. Concurrently, fuel prices also rose significantly, with the government addressing the situation by urging fair trading practices during the holy month.
Tanzania’s recent economic report indicates a slight rise in headline inflation, primarily driven by surging food prices. As per the National Bureau of Statistics (NBS), the inflation rate increased to 3.2 percent in February 2025, up from 3.1 percent the previous month. The latest figures reveal substantial price hikes in essential food items, with rice increasing by 3.8 percent and finger millet by 10.1 percent. Other staples such as maize and sorghum flour also saw notable increases.
Additionally, the overall Consumer Price Index (CPI) demonstrated a 0.6 percent rise from January, further indicating inflationary pressures. Other food products that experienced price surges include cooking oil, fruits, and various legumes. The seasonal demand linked to Ramadan, characterized by altered food consumption patterns, has contributed to this upward pressure on food prices.
In response to these developments, Prime Minister Kassim Majaliwa has called on traders to refrain from raising prices without valid reasons during the fasting month. Concurrently, the energy sector is also feeling inflationary pressures, with new fuel price caps announced by the Energy and Water Utilities Regulatory Authority (Ewura) for March. The price of petrol in Dar es Salaam increased to Tsh2,996 per litre, marking a 6.27 percent rise.
Diesel and kerosene prices have also experienced significant increases, with petrol prices now at Tsh2,885 and kerosene at Tsh3,036 per litre, reflecting rises of 6.73 percent and 12.02 percent, respectively. Ewura’s Director General, James Mwainyekule, has attributed these price hikes to fluctuations in global fuel markets and currency valuation changes.
In summary, Tanzania is experiencing a slight uptick in inflation, primarily influenced by rising food prices and energy costs. The National Bureau of Statistics reports an increase in the inflation rate and the Consumer Price Index, reflecting growing economic challenges. The government has urged traders to maintain fair pricing as Ramadan approaches, while the energy sector continues to be affected by global market trends, contributing to the overall inflationary environment.
Original Source: www.zawya.com
