• How does Tanzania's exclusion from the list of African countries with the lowest purchasing power reflect on the country's economic resilience and the potential variations in standards of living among its residents?
• Considering Tanzania's Consumer Price Index for Transportation (CPI Transportation) at 113.77, how might the relatively higher transportation costs impact the overall cost of living for Tanzanians, and what potential measures could be taken to alleviate this burden and improve economic sustainability?

Purchasing Power and Inflation:

Tanzania is not among the top African countries with the lowest purchasing power. The country's current inflation rate is reported to be 3.2 percent, which can impact the purchasing power of its residents.

Consumer Price Index (CPI):

The Consumer Price Index for Tanzania is given as 112.18, indicating the relative cost of a basket of goods and services. This, combined with specific indices like food inflation (4.5 percent) and CPI Transportation (113.77), provides a snapshot of the cost of living in the country.

Comparison with Other African Countries:

Tanzania's absence from the list of countries with the lowest purchasing power shows that, in comparison, it may have a relatively higher purchasing power than some other African nations. The list includes countries like Cameroon, Ivory Coast, Ethiopia, Nigeria, Ghana, and Uganda.

Economic and Social Challenges:

The information implies that, like several other African countries, Tanzania faces challenges associated with low purchasing power. This can be indicative of broader economic and social issues that impact the standard of living for many residents.

Data Source:

The data is sourced from Numbeo, a recognized research platform. This underscores the importance of reliable data sources in assessing and understanding a country's economic conditions.

Importance of Purchasing Power Index (PPI):

The discussion on the Purchasing Power Index emphasizes its significance in gauging a region's cost of living. The fact that the PPI is one of several indicators used by Numbeo suggests its importance in understanding economic conditions.

Role of Research Bodies:

The mention of research bodies like TICGL-Economic Consulting group highlights the role of organizations in compiling and disseminating economic data. It also suggests that there are efforts to provide information that can help in addressing economic challenges.

General

Tanzania does not feature among the Top 10 African cities with the lowest purchasing power. Currently experiencing an inflation rate of 3.2 percent, Tanzania's consumer price index stands at 112.18, with food inflation at 4.5 percent and CPI Transportation at 113.77, based on September 2023 statistics.

As a result, Tanzania is absent from the list of the ten African countries with the lowest purchasing power. The country at the forefront in this aspect is Cameroon, boasting a purchasing power index of 5.7, followed by Ivory Coast with an index of 6.2, Ethiopia at 8.2, Nigeria at 10.1, Ghana at 11.4, and Uganda at 13.4.

Africa, a continent filled with promise, grapples at times with the challenge of low purchasing power. Some nations consistently contend with this issue, with many residents unaware of how their purchasing power index compares globally. The data originates from Numbeo.

The Purchasing Power Index (PPI) is crucial in determining a city's cost of living, among four other indexes. Low purchasing power has extensive implications, with numerous African countries facing economic and social challenges.

Recognizing the significance of a region's purchasing power, the availability of the purchasing power index becomes essential for addressing the issue. Fortunately, research bodies, including Numbeo, collate such data.

The Purchasing Power Index (PPI) is a key economic indicator providing valuable insights into currency worth and the cost of living worldwide. Numbeo, a prominent data and research platform, notes that the local purchasing power index is derived from the average net salary of a given region.

A local purchasing power index of 40 means residents with an average salary can afford, on average, 60% fewer goods and services compared to residents of New York City with an average salary. Numbeo utilizes the local purchasing power index, along with four other indexes, to calculate the overall cost of living globally. This calculation includes the rent index, the cost of living plus rent index, the food index, and the restaurant pricing index, with their weighted average yielding the total cost of living index.

Having said that, these are the ten African cities with the lowest purchasing power.

Top 10 African cities with the lowest purchasing power