Tanzania’s inflation surges amid rising staple food prices

TANZANIA – Tanzania has recorded a slight increase in its headline inflation rate, driven primarily by rising prices for key staple foods, according to the latest data from the National Bureau of Statistics (NBS).

The NBS data indicated that the inflation rate climbed to 3.2 percent in February 2025, up from 3.1 percent in January due to inflationary pressures in the country, particularly in essential commodities.

Rice prices rose by 3.8 percent, finger millet grains surged by 10.1 percent, maize grains increased by 1.8 percent, sorghum flour by 4.0 percent, maize flour by 2.6 percent, and fresh beef by 0.8 percent.

The overall Consumer Price Index (CPI) recorded a 0.6 percent increase between January and February, underlining the rising cost of living.

Additional food items that experienced price increases include cooking oil (2.4 percent), fruits (2.6 percent), groundnuts (4.9 percent), vegetables (1.3 percent), potatoes (2.5 percent), sweet potatoes (2.9 percent), dried beans (3.5 percent), dried lentils (2.0 percent), cowpeas (3.7 percent), and cassava flour (1.4 percent).

According to NBS, the rise in food prices has been partly attributed to increased demand ahead of Ramadan, during which food consumption patterns shift due to daily fasting, evening feasts, and food donations to the underprivileged.

In response to these developments, Prime Minister Kassim Majaliwa has urged traders to avoid unjustified price hikes during the fasting period in March, emphasizing the importance of maintaining fair market practices.

The report comes after The Tanzania National Food Reserve Agency (NFRA) recently announced that it has significantly increased its grain storage capacity, with officials reporting that storage capacity has tripled since early 2021.

According to officials, the expansion has enabled the National Grain Reserve Agency to purchase 400,000 tonnes more than previous levels, a move aimed at strengthening food security and enhancing grain exports within the sub-region.

However, while the government’s interventions have led to a visible surplus, critics argue that restricting private traders from purchasing grain directly from farmers may have long-term consequences for the agricultural sector.

Critics say state-controlled purchasing often leads to price suppression, discouraging commercial farming and private-sector investments in agriculture.

In response, NFRA managers maintain that increased government purchases ensure farmers receive better prices for their produce compared to earlier periods.

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