Inflation has decreased by 4.8 percent in the previous month, but the rate has risen by 1.1 percent this year compared to last year. This has caused an increase in the cost of products such as foods and non-alcoholic beverages, transportation costs, information and communication costs, and education service costs, which have all decreased by 6 percent and 2.3 percent respectively. Despite a decline in inflation, the cost of living has also increased by 3.0 percent, particularly for necessary items and basic necessities. The government needs to do whatever is necessary to meet the reality of daily life despite the fact that inflation has decreased. Inflation has had a major impact on citizens’ GDP per capita income, which has dropped to 5.2 percent from 5.4 percent during the same time last year.
This has caused a decrease in the ability of citizens to afford the rising expense of living, particularly small businesses, such as WAMACHINGA, which rely on small businesses. The Bank of Tanzania has also increased money in circulation by 0.9 percent, despite an apparent 4.8 percent increase in the cost of living. imports of goods from abroad have been seen to increase, with some products increasing more than in the previous two years, but for 2021 it is 1447.4.