Tanzania’s annual inflation rate dropped to an all-time low of 3.1% in 2024, down from 3.8% in 2023, driven by a notable decrease in food inflation.
The National Bureau of Statistics (NBS) attributed this significant decline to government initiatives aimed at increasing food production and improving supply chains, resulting in better food availability and affordability across the country.
Food inflation fell sharply to 2.1% in 2024, compared to 6.8% in 2023, reflecting the largest impact on the overall inflation rate, as food and non-alcoholic beverages account for 28.2% of the Consumer Price Index (CPI) basket. This achievement highlights the success of strategic interventions in agriculture, which bolstered food security and stabilized prices for essential goods.
Also read: Tanzania Registers Record US$7.7 Billion Investments in 2024
In contrast, non-food inflation rose to 3.5% in 2024 from 2.6% the previous year, reflecting increased costs in other sectors. Meanwhile, core inflation, which excludes volatile items like unprocessed food and energy, climbed to 3.4% in 2024, up from 2.3% in 2023. The Core Index covers 297 items and represents 73.9% of the overall NCPI, offering policymakers a more stable measure of inflation trends.
This record low inflation rate underscores Tanzania’s effective policy framework and the importance of targeted agricultural investments. By ensuring price stability and boosting food production, the government has reinforced economic resilience and created a favourable environment for growth, further solidifying Tanzania’s position as a model of macroeconomic stability in the region.
