1. Definition
The NCPI measure changes over time in the cost of a fixed basket of goods and services that are
purchased by a representative sample of households in Tanzania. Currently, the NCPI basket
comprises of 383 goods and services, of which 132 are Food and Non-Alcoholic Beverages and
251 are Non-Food items. With regard to geographical coverage, the NCPI uses price data
collected from all 26 regional headquarters in Tanzania Mainland.

1.2 Weights and a Reference Period

The NCPI weights are based on monetary expenditures relating to consumption of all households
in 26 regions of Tanzania Mainland. The index weights are based on expenditures of both urban
and rural households derived from 2017/18 Household Budget Survey. The reference period for
base prices is the average of January to December, 2020 and the index reference period is year
2020.

1.3 Classification

The NCPI uses the UN Classification of Individual Consumption by Purpose, 2018 (UN COICOP,
2018) and is being disseminated using 13 COICOP. In addition, the rebased NCPI is
disseminated together with several additional index aggregations which includes: – Core index;
Energy, fuel and utilities; Non core index; services index; Goods index; Education services and
products ancillary to education index and All items less food and non-alcoholic beverages.

1.4 Elementary and Higher-Level Indices

Compilation of the NCPI use geometric mean of price relatives for compiling elementary index
aggregates and the Lowe Index formula (which is Laspeyres index formula type) is used for
computing higher level aggregates.

2.2. ANNUAL HEADLINE INFLATION FOR MARCH, 2022 SLIGHTLY DECREASED TO 3.6%

2.1 Headline Inflation Rate

The Headline Inflation Rate measures inflation when all items in the fixed CPI basket are included.
Table number 1 above indicates that, Annual Headline Inflation Rate for the month of March, 2022
has slightly decreased to 3.6% from 3.7% recorded in February, 2022. The decrease of headline
inflation explains that, speed of price change for commodities for the year ended March, 2022 has
slightly decreased compared to the speed recorded for the year ended February, 2022. The
overall index went up from 103.41 recorded in March, 2021 to 107.09 in March, 2022.

2.2 Food and Non-Alcoholic Beverages Inflation Rates

Food and Non-Alcoholic Beverages Inflation Rate for March, 2022 has increased to 6.5% from
6.1% recorded in February, 2022. On the other hand, Annual Inflation Rate for all items without
Food and Non-Alcoholic Beverages for March, 2022 has decreased to 2.4% from 2.7% recorded
in February, 2022.

2.3 Core Inflation Rates
Core Index excludes items with volatile prices, that is unprocessed food; energy and utilities.
Exclusion of volatile prices from the total NCPI provides a more stable Inflation Rate for Policy
Makers. The Core Index covers 297 items and the share of weight to total NCPI weight is 73.9%.
The inflation rate for Core Index in March, 2022 has decreased to 2.7% from 3.0% recorded in
February, 2022.

3. MONTHLY CONSUMER PRICE INDEX BETWEEN FEBRUARY AND MARCH, 2022
The National Consumer Price Index between February and March, 2022 has increased from
106.20 recorded in February, 2022 to 107.09 in March, 2022. The increase of the overall index is
attributed to price increase for some food and non-food items. Some food items that contributed to
an increase of the index include: – wheat grains by 1.3%, rice by 2.9%, maize by 2.7%, wheat flour
by 2.2%, maize flour by 1.6%, fresh fish by 3.6%, cooking oil by 1.9%, fruits by 3.8%, vegetable by
3.0%, sweet potatoes by 4.7%, cassava by 7.6% and cooking bananas by 4.1%.
On the other hand, some Non-food items that contributed to an increase of the index include: –
corrugated iron sheets by 1.2%, firewood by 3.5%, charcoal by 5.7%, diesel by 2.9% and petrol by
2.7%.

June, 2022 08th July, 2022

Further information relating to methodology and other aspects of NCPI can be obtained by
directing inquiries to:

Statistician General,
National Bureau of Statistics,
Jakaya Kikwete Road,
P.O. Box 2683,
Dodoma,
TANZANIA.

Tel: +255 26-2963822,
Fax: +225 26-2963828,
E-mail: sg@nbs.go.tz,
Website: www.nbs.go.tz

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