Commentaries | Sep 11,2020
Feb 9 , 2019
By FASIKA TADESSE ( FORTUNE STAFF WRITER )
Headline inflation, which has been easing for the past two months, sped up last month to reach 10.9pc, according to the latest report from the Central Statistical Agency (CSA).
Last month's report is the second after the Agency revised the basis for its inflation rate measurements, the Consumer Price Index (CPI) that quantifies the price of a basket of goods and services. The revision of the basis was made eight years after the last update.
January's headline inflation, a measurement of the cost of living, has shown growth for the second consecutive month. Last December, the inflation rate stood at 10.4pc, registering a 1.1 percentage point increase from the preceding year.
The CPI revision, which was made recently with the primary aim of replacing the old and outdated base year, has led to the revision of the inflation rate over the past 24 months. The current base year is set for 2016 and was selected to reflect more diversified and up-to-date data and includes additional goods that were excluded in prior year measurements, according to the Agency.
The double-digit rate was recorded last month, against the Agency's target of nine percent inflationary pressure in the reported time. The current Meherharvest season, when the supply of food items is high, was mentioned as a reason for the drop.
However, the latest CPI measurement of the average change in the price consumers pay, shows that non-food inflation in the stated period reached 10.2pc, while food inflation registered at 11.4pc, a respective 0.1 and 1.1 percentage point increase compared to the previous month.
“Last month, all cereal prices consistently rose in Addis Abeba, while teffprice rose in all regions,” reads the report from the Agency. “Meat, milk, cheese and eggs, butter and spices prices have shown an increase.”
Nonetheless, the prices of wheat, rice, sorghum and durra showed a slight decline in most regions, adds the report, which also reveals that the prices of vegetables have stabilised in all regions compared to the previous month.
The non-food inflation rate was pushed up by the rise in prices of footwear and clothing, housing repair and maintenance, energy, household goods, furnishings, transport, health care and food and drinks consumed away from home, the report indicates.
While the inflationary pressure in Ethiopia has risen, neighbouring Kenya managed to keep the figure down in the single digits. Kenya's inflation rate in January was 4.7pc, dipping by one percentage point from the previous month, according to tradingeconomics.com, a New York-based statistics and data provider.
For the past 15 years, the average inflation rate of the country was 14pc, according to Prime Minister Abiy Ahmed (PhD), who addressed parliament two weeks ago.
"We have targeted to govern the inflation rate and keep the figure in single digits by cutting government expenditures and investments on mega projects," he said.
The economy may show improvements, according to Atlaw Alemu (PhD), a lecturer at Addis Abeba University, but it is hard to say it is cured as the symptoms of unhealthiness are already there.
"Double-digit inflation, a higher unemployment rate, a severe forex crunch are all there in the economy," commented Atlaw.
PUBLISHED ON
Feb 09,2019 [ VOL
19 , NO
980]
Commentaries | Sep 11,2020
Editorial | Jun 24,2023
Life Matters | Jan 21,2023
News Analysis | Aug 07,2021
Editorial | Apr 29,2023
Commentaries | Jul 17,2022
Agenda | Mar 14,2020
Radar | May 04,2024
Exclusive Interviews | Sep 10,2023
Viewpoints | Oct 22,2022
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transportin...
Jul 13 , 2024 . By MUNIR SHEMSU
The cracks in Ethiopia's higher education system were laid bare during a synthesis re...
Jul 13 , 2024 . By AKSAH ITALO
Construction authorities have unveiled a price adjustment implementation manual for s...
Nov 2 , 2024
Addis Abeba, fondly dubbed a 'New Flower,' is wilting under the weight of unchecked u...
Oct 26 , 2024
When flames devoured parts of Mercato, residents watched helplessly as decades of toi...
Oct 20 , 2024
Central Bank authorities have unveiled no less than six new guidelines to fine-tune t...
Oct 12 , 2024
In his inaugural address on October 27, 2024, Taye Atseqesellasie, the fifth presiden...