The Producer Price Index (PPI) for Tanzania recorded a modest annual increase of 0.35% from 116.03 in the fourth quarter of 2023 to 116.43 in the fourth quarter of 2024, according to the National Bureau of Statistics. Despite a quarterly decrease of -0.10% between the third and fourth quarters of 2024, the mining and quarrying sector remained stable with a marginal annual growth of +0.03%, while manufacturing recorded a slight annual growth of +0.62%. Meanwhile, the water supply sector under utilities showed a significant surge of +27.39% over the year, indicating infrastructure pressures and rising operational costs. Based on these trends, Tanzania's overall PPI is forecasted to grow slowly by around 1.0% to 2.0% in 2025, driven by stable mining activities, continued utility sector price pressures, and a slow recovery in the manufacturing sector.
1. Overall Producer Price Index (PPI)
2. Sector Performances
➡️ Mining and Quarrying (Weight: 19.08%)
➡️ Manufacturing (Weight: 62.80%)
➡️ Utilities (Electricity, Gas, Water) (Weight: 18.12%)
| Sector | % Increase |
| Manufacture of electrical equipment | +3.84% |
| Water collection, treatment and supply | +3.32% |
| Manufacture of coke and refined petroleum products | +2.69% |
| Manufacture of tobacco products | +2.00% |
| Manufacture of food products | +0.42% |
| Sector | % Decrease |
| Manufacture of rubber and plastics products | -3.25% |
| Manufacture of chemicals and chemical products | -2.90% |
| Manufacture of beverages | -2.07% |
| Manufacture of pharmaceuticals | -1.74% |
| Printing and reproduction of recorded media | -1.66% |
Top 3 Annual Increases:
| Sector | % Increase |
| Water collection, treatment and supply | +27.39% |
| Other manufacturing | +16.33% |
| Manufacture of leather and related products | +13.72% |
Top 3 Annual Decreases:
| Sector | % Decrease |
| Manufacture of tobacco products | -5.86% |
| Printing and reproduction of recorded media | -3.97% |
| Manufacture of chemicals and chemical products | -3.51% |
Notes on Methodology:
1. Manufacturing Sector (Weight: 62.80%)
Meaning:
The manufacturing sector is struggling to push prices up — which usually suggests either:
Key Problem Sectors inside Manufacturing:
These drops tell us some industries are experiencing either oversupply or lower consumer spending (e.g., beverages = people spending less?).
2. Mining and Quarrying (Weight: 19.08%)
Meaning:
The mining sector is very stable — no price pressures.
3. Utilities: Water, Electricity, Gas (Weight: 18.12%)
Meaning:
Costs in water services have skyrocketed — maybe:
Electricity and gas prices are stable though.
Summary: Which sectors tell the bigger story?
| Sector | Trend | Reason |
| Manufacturing | Weak | Slowing demand or competition |
| Mining | Stable | No major shocks |
| Water supply (Utilities) | Very Strong | Rising operational costs or demand |
Why is this happening?
My interpretation:
In short:
👉 Manufacturing is under pressure.
👉 Mining is stable and resilient.
👉 Water utilities are seeing huge price rises, impacting overall production costs.
1. Manufacturing Sector Forecast (Weight: 62.80%)
2025 Forecast:
Reason:
2. Mining and Quarrying Forecast (Weight: 19.08%)
2025 Forecast:
Reason:
3. Utilities (Electricity, Water) Forecast (Weight: 18.12%)
2025 Forecast:
Reason:
Quick Forecast Table for 2025
| Sector | 2024 Annual Change | 2025 Forecast | Why? |
| Manufacturing | +0.62% | +1.0% to +2.0% | Recovery will be slow, demand low |
| Mining & Quarrying | +0.03% | +0.5% to +1.5% | Stable global mineral prices |
| Utilities | -0.26% (overall), Water +27.39% | +5% to +10% (Water) | Water stress, infrastructure costs |
Why?