Transport, fuel prices push inflation higher in April

Dar es Salaam. Rising transport and energy costs pushed Tanzania’s headline inflation sharply higher in April 2026, signalling growing pressure on household budgets and business operations across the country.

New figures released by the Bank of Tanzania (BoT) show that headline inflation increased by 1.28 percent on a monthly basis in April, up from 0.84 percent recorded in March.

The latest data confirms a sustained rise in consumer prices during the opening months of the year, largely driven by escalating fuel, transport and utility costs.

The transport sector emerged as the main driver of inflation, with prices rising by 5.20 percent in April compared to a 0.54 percent increase recorded in March.

The sharp increase reflects rising fuel costs and higher logistics charges, which continue to affect the movement of goods and passengers across the economy.

Transport carries a 14.1 percent weighting in the National Consumer Price Index (NCPI), making it one of the most influential sectors in determining the overall cost of living.

Analysts say the latest increase is likely to have widespread implications for food distribution, manufacturing and retail prices.

At the same time, the “Energy, Fuel and Utilities” sub-group recorded a monthly increase of 5.05 percent.

The rise added further pressure on households already facing higher electricity, cooking fuel and transport expenses.

Businesses are also expected to face rising production and operating costs as energy prices continue to climb.

Despite the sharp increase in transport and utility costs, food inflation showed signs of slowing.

Food and non-alcoholic beverages, which account for the largest share of the consumer basket at 28.2 percent, recorded monthly inflation of 0.90 percent in April, down from 1.76 percent in March.

The slowdown indicates some easing in food price growth as the harvest season usher in.

However, prices remain elevated compared to previous months, meaning consumers are still spending more on basic commodities.

Economists note that the moderation in food inflation has not been sufficient to offset increases in transport and energy costs.

Other essential services also registered price increases during the month.

Education costs rose by 1.60 percent.

Core inflation, which excludes volatile food and energy prices and is used to measure underlying price stability, rose by 1.13 percent in April.

The increase suggests that inflationary pressures are spreading beyond temporary supply shocks and becoming more deeply rooted within the broader economy.

Meanwhile, non-core inflation stood at 1.66 percent, reflecting the continued impact of fluctuations in fuel and food prices.

The “all items less food” index also increased sharply by 1.46 percent, indicating that inflation is increasingly being driven by industrial, transport and service-related costs rather than agricultural output alone.

Economic analysts warn that continued increases in transport and energy prices could force policymakers to reassess fiscal and monetary measures aimed at controlling inflation and supporting economic stability.

For consumers and businesses, the latest figures underline the growing challenge of managing rising living and operating costs as inflationary pressures continue to build.