The Q2 inflation figures for 2022 stood at 4.1%, while the Q3 figures were 3.9% year-on-year from Quarter 3 of 2021.
The major causes for the rise in inflation include, rise in food prices, transportation and building materials.
The bank also revealed that the East African Community (EAC) and Southern African Development Community (SADC) regional blocs which Tanzania is a part of, also experienced an increase in inflation rates.
This backslide, according to the Bank of Tanzania (BOT), is the fault of its trade partners, and the high commodity prices for continued pressures on its domestic market.
The Bank of Tanzania released a report, stating, “because of this unpleasant external environment, combined with elevating domestic supply-side constraints, inflation continued to trend upward, reaching 4.8% in September 2022 in Tanzania mainland.”
The Bank also noted that the rise in inflation was also due to external factors that had complicated the administration’s ability to revise some of its monetary policies.
However, the Bank disclosed that despite the sharp increase in inflation, the inflation remained in line with the country’s 2022/2023 fiscal year target and both EAC and SADC convergence criteria.
The country’s ability to keep its head above water, is due to the numerous initiatives concocted by Tanzania’s current administration to grow its economy.
In 2022, under the leadership of the country’s President, Samia Suluhu Hassan, Tanzania’s investment opportunities tripled from last year. Read the story here.
Tanzania also has a knack for extending a hand of friendship to far and near potential business partners. In December, the country signed a 2.2 billion deal to help tear down trade barriers between it and its neighbors.
Even during the World Cup, Tanzania found a way to leverage the amassed spectators to increase its agricultural exports. Read the story here.