The inflation for the month of August remained at 3.3 as it was the case in July 2023, being within the national and regional inflation benchmarks.

The primary objective of the Bank of Tanzania (BoT) is to formulate, define and implement monetary policy directed to the economic objective of maintaining domestic price stability conducive to a balanced and sustainable growth of the national economy. A stable inflation rate contributes to BoT’s ability to achieve its goal.

According to the National Bureau of Statistics, food inflation during the month declined to 5.6 percent, from 6.1 during the preceding month, and 7.8 percent during the corresponding month in 2022. Some of the food items that experienced a decline in inflation rates included wheat and maize.

However, non-food inflation increased to 2.4 percent in August 2023, as compared to the 2.2 percent recorded in the preceding month.

Core inflation increased slightly to 2.2 percent in August 2023 from 2.1 percent in the preceding month.

Energy, fuel and utilities exhibited a deflationary trend with an inflation rate of 0.6 percent for the month.

During the past 10 months, major contributors to overall inflation are food inflation (unprocessed food) and core inflation. The contribution of energy inflation remains low.

Meanwhile, inflation rates in the East African Community and Southern Africa Development Community regions is also easing following improvement in food situation, hence converging to regional targets.

Inflation is projected to remain low and stable in the coming months owing to sufficient food supply and expected easing of consumer goods prices globally, as well as moderation of inflation rates in Tanzania’s major trading partners.

Despite the appealing situation, upward risks remain due to rising pump prices associated with supply cuts by OPEC+.