In a remarkable turn of events, Tanzania’s National Food Reserve Agency (NFRA) has reported a substantial increase in food stocks, reaching an all-time high of 244,169.5 tonnes in the third quarter of 2023. This marks a significant surge from the 149,044.4 tonnes recorded during the same period in the previous year, as revealed in the Bank of Tanzania’s (BoT) latest Economic Bulletin covering the quarter ending September 2023.
According to the Central Bank’s report, the annual inflation for food and non-alcoholic beverages witnessed a noteworthy decrease, averaging at 5.8 percent compared to 7.5 percent in the corresponding quarter of 2022. This dip in inflation is attributed to the abundant food supply in markets, although prices have seen a relative increase.
The most notable spikes in food prices were observed in beans and rice. Despite these increases, the report assures that the overall food situation remains satisfactory, largely due to robust harvests in the 2022/23 crop season.
Simultaneously, inflation in energy, fuel, and utilities experienced a remarkable decline, averaging at a mere 0.1 percent. This substantial drop is a stark contrast to the 9.6 percent recorded in the same quarter of the previous year. The report attributes this decline to stabilized domestic pump prices, aligning with global market trends.
Core inflation also showed a positive trend, easing to an average of 2.2 percent from 3.3 percent in the corresponding quarter of 2022. This signals a more stable economic environment.
As the report looks ahead, it anticipates a modest increase in inflation, primarily due to rising energy prices and imported inflation. However, it predicts that inflation will remain within the target range of 3-5 percent in the near and medium term.
In summary, Tanzania’s food reserves have reached unprecedented levels, contributing to a decline in food inflation, while the energy sector has experienced a notable reduction in inflation rates. The overall economic outlook remains optimistic, with expectations of inflation staying within acceptable limits in the coming months.