THE annual headline inflation rate for the month of August has increased to 3.1 percent from 3.0 percent that was recorded in July, the National Bureau of Statistics (NBS) has announced.

In a statement released yesterday, the bureau explained that the increase in headline inflation reflects a faster rate of price changes for commodities for the year ending August 2024 compared to the rate recorded for the year ending July 2024. At the same time, the overall index rose from 112.25 in August 2023 to 115.78 in August 2024.

The inflation rate for food and non-alcoholic beverages increased to 2.8 percent in August 2024, up from 1.0 percent in July 2024. Conversely, the annual inflation rate for all items excluding food and non-alcoholic beverages decreased to 3.3 percent in August 2024, down from 3.8 percent in July 2024.

“The National Consumer Price Index (NCPI) has shown relatively stable price movement from August 2023 to August 2024, ranging between 112.25 and 115.78. Additionally, annual headline inflation rates over this period have remained stable, ranging between 3.0 percent and 3.3 percent,” reads the statement.

The NCPI measures changes over time in the cost of a fixed basket of goods and services purchased by a representative sample of households in Tanzania. Currently, the NCPI basket includes 383 goods and services, of which 132 are food and non-alcoholic beverages, and 251 are non-food items. The NCPI uses price data collected from all 26 regional headquarters in mainland Tanzania.

Between July 2024 and August 2024, the NCPI decreased from 116.04 to 115.78. This decrease is attributed to lower prices for some food and non-food items.

Food items contributing to the decrease include wheat grains (-0.4 percent), rice (-1.4 percent), sorghum grains (-0.6 percent), finger millet grains (-0.3 percent), white maize grains (-0.5 percent), sorghum flour (-0.6 percent), and fruits (-0.4 percent). Other decreases include vegetables (-2.0 percent), round/Irish potatoes (-1.1 percent), fresh cassava (-1.1 percent), cocoyam (-5.0 percent), cooking bananas (-5.1 percent), dry cassava (-1.8 percent), cassava flour (-2.7 percent), and sugar (-2.2 percent).

Non-food items contributing to the decrease include: kerosene (-1.1 percent), firewood (-2.7 percent), wood charcoal (-7.6 percent), diesel (-0.3 percent), mobile telephone handsets (-0.8 percent), and recreation, sport, and culture (-0.2 percent).

In comparison with other East African countries, Kenya recorded an increase in its inflation rate from 4.3 percent in July 2024 to 4.4 percent in August 2024 while Uganda saw a decrease to 3.5 percent in August 2024, down from 4.0 percent in July 2024.