Tanzania has made significant progress in reducing inflation over the past decade. From an average annual Consumer Price Index (CPI) growth rate of 7.1% during 2010–2019, the country is projected to achieve a much lower and more stable rate of 4.0% over 2025–2027. This improvement reflects effective monetary and fiscal management, helping Tanzania transition into the group of low-inflation economies in Sub-Saharan Africa. For context, inflation is projected to remain high in countries like Nigeria (10%+), Ghana (8.0%), and Zambia (8.0%), while Tanzania outperforms even some of its regional peers, including Uganda (5.0%) and Kenya (5.5%). From 4.4% in 2022, CPI in Tanzania declined to 3.1% in 2024, and is expected to stabilize around 4.0% by 2027, underscoring its growing macroeconomic resilience and investor appeal.

Tanzania is expected to maintain low and stable inflation between 3.1% and 4.0% from 2024 to 2027, indicating macroeconomic stability and strong monetary policy performance​.

Tanzania’s Position and Implications

• Historically (2010–2019), Tanzania had moderately high inflation (7.1%).
• In the forecast period (2025–2027), inflation is projected to stabilize around 4.0%, which is well below the regional average and better than many high-inflation economies.
• Compared to regional peers:
  • Lower than Uganda (5.0%)
  • Lower than Zambia (8.0%)
  • Lower than South Africa (4.6%)
  • Comparable to Rwanda (4.3%)

Top African Countries by CPI Annual Change (Inflation Rate)

Highest Inflation Countries (2010–2019 average)

These countries faced persistent inflationary pressures over the decade:

Tanzania recorded an average annual CPI of 7.1%, slightly higher than Uganda (6.2%) and comparable to Zambia (8.8%). This places Tanzania among the moderately high-inflation economies in Sub-Saharan Africa during the 2010s.

CPI Trends and Projections (2022–2027)

Tanzania's annual CPI (inflation) showed the following trend:

Comparison with other notable countries (2027 projections)

Tanzania is transitioning from a moderately high inflation environment to a low and stable inflation economy, which enhances its macroeconomic credibility, investment attractiveness, and household purchasing power.

1. Tanzania Has Tamed Inflation Over Time

• From 2010 to 2019, Tanzania experienced moderately high inflation, averaging 7.1% annually.
• This level was higher than Uganda (6.2%) and much higher than Benin or Côte d’Ivoire (often under 3%), reflecting structural challenges like food price volatility, energy costs, and monetary expansion.

2. A Clear Downward Trend in Inflation

• Tanzania has achieved significant inflation reduction:
  • 2022: 4.4%
  • 2023: 3.8%
  • 2024e: 3.1%
  • 2025f–2027f: Stabilizing at ~4.0%
• This puts Tanzania in the low-inflation group in Sub-Saharan Africa, joining countries like Rwanda (4.3%) and Benin (1.5%).

3. Tanzania Performs Better Than Many Peers

• In 2027, Tanzania’s CPI of 4.0% will be:
  • Lower than Nigeria (10%+), Ghana (8.0%), and Zambia (8.0%)
  • Lower than regional average, with many countries still facing double-digit inflation
• This shows Tanzania’s strong monetary policy and price stability, even as others still struggle with inflationary pressures.

💡 What It Tells Us

• Tanzania has made real progress in macroeconomic management.
• It is now one of the more stable economies in East and Sub-Saharan Africa in terms of inflation, which:
  • Supports consumer purchasing power
  • Encourages investment
  • Enables predictable economic planning

In short, Tanzania has moved from a high-inflation past to a low-inflation future, showing maturity in economic policy and resilience compared to many of its African peers.