Tanzania’s inflation rate rose to 3.2 percent in February 2025, primarily due to higher food prices. There were notable increases in staple foods and energy prices, with the government urging traders against unjustified price hikes during Ramadan. Recent fuel price caps also indicate rising petrol, diesel, and kerosene costs, attributed to global market trends.
Tanzania has observed a slight uptick in headline inflation primarily driven by an increase in food prices. Recent data from the National Bureau of Statistics (NBS) indicates that the inflation rate rose to 3.2 percent in February 2025, up from 3.1 percent in January. This rise reflects significant increases in the prices of staple foods, including rice, finger millet grains, and maize.
Key staples have experienced notable price increases; rice surged by 3.8 percent, finger millet grains by 10.1 percent, and maize grains by 1.8 percent. Additionally, prices for sorghum flour rose by 4 percent, maize flour by 2.6 percent, and fresh beef by 0.8 percent. The overall Consumer Price Index (CPI) increased by 0.6 percent from January to February, indicating ongoing inflationary pressures.
Other food items with increased prices included cooking oil (2.4 percent), fruits (2.6 percent), and various legumes, with dried beans rising by 3.5 percent and dried lentils by 2 percent. These price hikes have been partly linked to heightened demand in anticipation of Ramadan, a month characterized by shifts in food consumption patterns due to fasting and increased meal sharing.
In light of the rising prices, Prime Minister Kassim Majaliwa has urged traders to refrain from imposing unjustified increases during the fasting month of March. Additionally, inflationary pressures have been noted in the energy sector, as significant price increases have been imposed on fuel.
The Energy and Water Utilities Regulatory Authority (Ewura) announced new fuel price caps, revealing notable rises in petrol, diesel, and kerosene prices. Petrol prices in Dar es Salaam increased to Tsh2,996 ($1.03) per litre, diesel to Tsh2,885 ($0.99), and kerosene saw a sharp increase to Tsh3,036 ($1.05) per litre. According to Ewura’s Director General, James Mwainyekule, these price increases are attributed to global fuel market trends and currency fluctuations.
The recent data reflects Tanzania’s ongoing challenges with inflation, particularly driven by rising food prices, which have seen significant increases in staple products. The call from Prime Minister Kassim Majaliwa for traders to avoid undue price hikes during Ramadan adds context to the socio-economic pressures faced. Concerning the energy sector, the hikes in fuel prices further compound the inflationary situation, influenced by global market dynamics and currency fluctuations.
Original Source: www.zawya.com
