ARUSHA, TANZANIA — The East African Community (EAC) is grappling with stubbornly high inflation even as trade figures soar, with food prices emerging as the sharpest pain point across the region. According to the EAC Secretariat’s Quarterly Statistics Bulletin (Q2 2025), the “annual average food inflation in the EAC region stood at 38.5% for the 2024/25 fiscal year, compared to 6.2% a year earlier.” The Bulletin attributes the surge largely to spikes in prices for “food crops, fresh milk, and tobacco leaves,” particularly in South Sudan (179.4%) and Burundi (34.1%), which have distorted regional averages. The Secretariat warned that “the annual headline inflation stood at 22.7% in June 2025, from 24.0% a month earlier,” underscoring how rising living costs continue to strain households despite improving trade performance.
Regional economists say food inflation is being driven by supply-side pressures rather than demand. According to the African Development Bank (AfDB), erratic rainfall patterns, currency depreciation, and high transport costs have combined to push up staple food prices across East Africa. The AfDB’s 2025 East Africa Economic Outlook noted that “food insecurity and climate shocks remain major threats to macroeconomic stability,” and warned that persistent inflation could undermine poverty reduction gains made over the past decade.
