Tanzania Inflation Rate Hits Near 3-1/2-Year High

The annual inflation rate in Tanzania inched up to 4.3% in August 2026 from 4.2% in July, reaching the highest level since April 2023. Upward pressure came primarily from prices of transportation (13.8% vs 13.8% in July); education (3.2% vs 2.8%); restaurants & hotels (3% vs 2.7%); furnishings & household equipment (2.6% vs 2.2%) and housing & utilities (2.5% vs 1.6%). Meanwhile, softer price growth was seen for other CPI items such as food & non-alcoholic beverages (3.7% vs 4.1%) and alcoholic beverages & tobacco (1.5% vs 1.9%). On a monthly basis, the CPI rose by 0.1% in August, after decreasing by a similar margin in July.

Tanzania’s annual inflation rate rose to 4.2% in July 2026 from 4.0% in June, returning to the level last seen in May, which was the highest since January 2023. The acceleration was mainly driven by higher inflation for transport (13.8% vs 13.6%), housing and utilities (1.6% vs 1.2%), restaurants and hotels (2.7% vs 1.9%), health (1.4% vs 1.3%), recreation and culture (0.7% vs 0.5%), education (2.8% vs 2.7%) and clothing and footwear (1.6% vs 1.3%). Meanwhile, inflation for food and alcoholic beverages and tobacco stood at 4.1% and 1.9%, respectively. In contrast, inflation eased for furnishings (2.2% vs 2.5%) and information and communication (0.6% vs 0.5%). On a monthly basis, consumer prices fell 0.1%, reversing a 0.1% increase in June.

The annual inflation rate in Tanzania came in at 4% in June 2026, little changed from May's 4.2%, which was the steepest since April 2023. Upward pressure came mostly from prices of transportation (13.6% vs 11.9% in May); food & non-alcoholic beverges & tobacco (4.1% vs 5.6%) and personal care, social protection and miscellaneous & goods services (3.6% vs 3.5%). The smallest increases were seen for insurance & financial services (0.2% vs 0.2%); recreation, sport & culture (0.5% vs 0.7%) and information & communication (0.9% vs 0.9%). On a monthly basis, the CPI edged up by 0.1%, after a 0.2% increase in the previous month.