A Thesis Submitted to Mzumbe University, Dar es Salaam Campus College in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Accounting and Finance (MSc-A&F) of Mzumbe University.This study intended to examine the factors influencing price inflation in the economy of Tanzania. The research was carried out at the Bank of Tanzania (BOT) and Ministry of Finance and Economic Affairs (MOFEA) in Tanzania. The study was conducted with the following objectives: To establish internal factors which influence inflation in Tanzania, establish external factors which influence inflation and finally suggest probable measures to curb inflation in Tanzania’s economy. However after a thorough scrutiny the following factors were established as influencing price inflation in Tanzania these included rising fuel costs, rising energy prices, rising food prices and depreciation of the Tanzanian shilling. Data were collected through Questionnaires, Interviews and Documentary Review. Questionnaires were open-ended questions, which allowed individuals to express their views concerning the causes of inflation in Tanzania’s economy. Interviews were conducted on the basis of predetermined interview guide. Nevertheless there was reluctance of the interviewees giving the data due to the busy nature of their activities I therefore had to collect hard data from their businesses and went on to scrutinize on by myself. For this case more of secondary data was used. After analyzing the data, tests of questionnaires were carried and presented in tables for easy interpretation. From findings, a researcher has concluded that the Bank of Tanzania in collaboration with Ministry of Finance and Economic Affairs have a lot to do in order to make sure there is low inflation rate in Tanzania in order to reduce price increase for goods and services in Tanzania at household level. This study recommends that it is necessary to identify the main causes of inflation in Tanzania and use proper measures to curb it.