In March 2024, the cost of food in Tanzania increased by 1.40 percent compared to the same month in the previous year. This indicates a moderate rise in food prices over that period.

Looking at a broader trend, the average food inflation in Tanzania from 2010 to 2024 was 8.05 percent. However, there have been significant fluctuations within this period. The highest recorded food inflation was 27.84 percent in January 2012, while the lowest was 0.10 percent in March 2019.

According to TICGL macro models and analysts' expectations, food inflation in Tanzania is anticipated to be 1.20 percent by the end of the current quarter. This suggests a relatively stable, but slightly lower, inflation rate compared to March 2024.

In the long term, the projection for Tanzania's food inflation is as follows:

• 2025: Around 1.40 percent
• 2026: Around 1.30 percent

These projections are based on econometric models and indicate a gradual but overall stable trend in food inflation for the upcoming years. It suggests a modest increase in food prices but at a relatively low rate compared to historical highs.

Tanzania's economic stability through Food Inflation Trends:

While Tanzania has experienced some variability in food inflation in the past, the current and projected figures indicate a degree of stability in the economy. The moderate and controlled inflation rates suggest that economic policymakers are likely implementing effective measures to maintain stability and manage inflationary pressures.

1. Moderate Food Price Increase: The 1.40 percent increase in food prices in March 2024 suggests that inflation is present but at a manageable level. Moderate inflation indicates that the economy is not overheating or experiencing significant price instability.
2. Historical Variability: Tanzania has experienced significant fluctuations in food inflation over the years, with highs of 27.84 percent in 2012 and lows of 0.10 percent in 2019. While this indicates some volatility, it's worth noting that recent figures have been within a more stable range.
3. Current and Short-Term Outlook: The projection of 1.20 percent food inflation by the end of the current quarter indicates a stable and relatively low inflationary environment in the short term. This suggests that policymakers may be effectively managing inflationary pressures.
4. Long-Term Stability: The long-term projections for food inflation in Tanzania (1.40 percent in 2025 and 1.30 percent in 2026) suggest that policymakers and analysts expect the economy to remain relatively stable over the next few years. These projections indicate a controlled inflation rate, which is important for economic stability.