Tanzania inflation flat in October

Inflation in Tanzania was 4.0% year on year in October 2021, unchanged from September. However, this inflation figure is the highest since February 2018. There was a downward change in inflation sub-indices such as housing and utilities, transport, food, and non-alcoholic beverages.

Upward inflationary pressure came from sub-indices such as clothing and footwear, which was 4.9% compared to 4.8% in the prior month.

The country’s government recently intervened to prevent an increase in the price of fuel. This was the third time it did so. Had it not been for this measure, inflation could be a tad higher than the current rate.

Meanwhile, Tanzania’s government has moved to fast-track approval of the $30bn liquefied natural gas (LNG) project. Tanzania, Shell, and Equinor have already started the critical negotiations with the aim of bringing the project online by 2026.