This research outlines the inflation rates in Tanzania across various categories for December 2022, November 2023, and December 2023, with a focus on the 1-month and 12-month changes.
In the food and non-alcoholic beverages category, there was a 0.6% increase from November 2023 to December 2023, resulting in a 2.3% rise over the 12-month period. Alcoholic beverages and tobacco experienced a 0.1% increase in the same time frame, contributing to a 4.1% rise over the year.
Clothing and footwear, however, exhibited a significant decrease of -89.4% from November 2023 to December 2023, leading to an -89.1% change over the 12 months. Housing, water, electricity, gas, and other fuels, as well as furnishings, household equipment, and routine household maintenance, collectively saw a 1.5% increase from the previous month, contributing to a 4.0% rise over the year.
Health, transport, information and communication, recreation, sports and culture, education services, restaurants and accommodation services, and insurance and financial services all experienced moderate increases in the 1-month and 12-month periods. Personal care, social protection, and miscellaneous goods and services showed a 1.2% increase in the 1-month period, contributing to a 4.8% rise over the year.
The overall inflation rate for Tanzania was 113.34 in December 2023, representing a 0.6% increase from November 2023 and a 3.0% rise over the 12-month period. This data provides a comprehensive overview of how inflation rates have fluctuated across different sectors in Tanzania, offering insights into the country's economic trends.
This research shows a mixed economic landscape in Tanzania, with varying inflation rates across different sectors. While some sectors experience inflation, others witness deflation or moderate changes. These fluctuations may be influenced by a combination of domestic and international economic factors, making it essential for policymakers and businesses to consider a nuanced approach to economic management and decision-making.
Sectoral Variations:
Different sectors of the economy experience distinct inflation rates. For instance, while food and non-alcoholic beverages, as well as alcoholic beverages and tobacco, saw moderate increases, clothing and footwear exhibited a substantial decrease. This suggests that economic factors impacting these sectors vary, potentially influenced by factors like supply chain disruptions, consumer demand, or government policies.
Volatility in Consumer Goods:
The significant decrease in inflation for clothing and footwear stands out, indicating a potential deflationary trend in this sector. This could be due to factors like seasonal sales, changes in consumer preferences, or increased competition among retailers.
Housing and Utilities:
The housing, water, electricity, gas, and other fuels category, along with furnishings and household maintenance, experienced a consistent increase. This suggests that costs related to housing and maintaining a household are on the rise, which could have implications for the cost of living for Tanzanian households.
Moderate Increases in Various Sectors:
Health, transport, information and communication, recreation, education services, restaurants and accommodation services, insurance, and financial services all saw moderate increases. This indicates a general upward trend in prices across a broad range of services and goods.
Overall Inflation Rate:
The overall inflation rate for Tanzania increased by 0.6% from November 2023 to December 2023. Over the 12-month period, there was a 3.0% rise in the inflation rate. This provides a comprehensive view of the cumulative impact of inflation across all sectors, reflecting the overall economic climate in the country.