The National Bureau of Statistics Office (NBS) has reported that the annual headline inflation rate in the country for March has dipped to 4.7%, a slight decrease from February's 4.8%. This decline in inflation indicates a marginal slowdown in the rate of price changes for various goods during March compared to the previous month.
Dr. Albina Chuwa, the Statistician General, explained that the drop in the inflation rate for March was due to reduced inflation for certain food and non-food products. A closer look at the data reveals that the dip in the inflation rate can be attributed to reduced inflation for certain food and non-food products. She mentioned that food items such as rice, wheat flour, millet flour, and fruits experienced price decreases, which contributed to the overall decline in inflation. For instance, rice prices decreased from 32.7% to 32%, wheat flour prices dropped from 18.8% to 16.1%, and millet flour prices fell from 5.8% to 5.6%.
Additionally, Dr. Chuwa noted that prices for various non-food products also decreased, including men's and women's clothing, men's and children's shoes, and construction and home renovation materials. Additionally, the prices of non-food products, such as men's clothes (from 2.2% to 1.6%), women's clothes (from 2.9% to 2.8%), and men's shoes (from 2.6% to 2.3%), also experienced a decrease.
She further highlighted that the energy sector witnessed a drop in price inflation, with cooking gas, wood, and diesel prices all declining. Another noteworthy aspect of the NBS report is the comparative analysis with other East African countries.
Tanzania's inflation rate has decreased more significantly compared to Uganda and Kenya during the same period. While Uganda's inflation rate dipped from 9.2% to 9.0%, Kenya's inflation remained stagnant at 9.2%. This could be indicative of more effective economic policies and measures implemented in Tanzania to curb inflationary pressures. However, despite the drop in the headline inflation rate, the overall index rose from 107.09 in March 2022 to 112.13 in March this year, signifying a general increase in the price level of goods and services over the course of the year.