Cost of Living Dips for Third Month

Feb 8 , 2020

Headline inflation, a measurement of the cost of living, dipped for the third consecutive month, reaching 18.7pc last month, according to the Central Statistical Agency (CSA). The rate showed a 0.8 percentage point decline from the previous month. In January food inflation hit 22pc, a 2.7 percentage point decline from the preceding month. Non-food inflation has also slightly fallen to 15pc from the 15.8pc rate registered in December. Slight declines in prices of some cereal types such as maize, rice, wheat and sorghum were observed, according to the report. "However, teff's price increased last month," reads the report. "Increases in meat prices continued, though the increases were not as exaggerated as in the previous months." Prices of tomatoes, cabbage and carrots showed a slight decline, indicated the report.  Higher prices of stimulants (khat), clothing and footwear, house rent, housing repair and maintenance, energy and household goods and furnishings, health care and transport caused the growth of the non-food inflation rate. Though the rate has declined from the preceding month, last month's rate still stands higher than the average rate of the past fiscal year, which had headline inflation of 13.7pc.