Ethiopia’s pace of inflation, the average change in the price for a basket of goods and services that consumers purchase, grew by one percentage point in January to 19.2pc, far higher than the government's single-digit target.

The latest consumer price index (CPI) from the Central Statistical Agency (CSA) indicated that both food and non-food items had shown a rise in price. The survey indicated that food inflation stands at 23.1pc, a 1.8-percentage-point rise from the previous month.

Most cereal prices showed an increase, contributing greatly to the rise in food inflation, while vegetables and some pulse types also registered an increase in their prices, according to the report from the Agency.

"The continued rise in the prices of sugar, edible oil, spices, potatoes and coffee has contributed to an increase in the rate of inflation," reads the report.

There is a huge rift from the supply side of food items, according to Getachew Asfaw, an economist who has published four books on the macroeconomic conditions of the country.

"There is a severe supply shortage," he said, "and there is enormous wastage during production."

Non-food inflation came in at 14.5pc, a slight 0.2-percentage-point decrease from the rate registered in December although it increased by 14.5pc in January 2021 compared to the rate observed in January 2020.

The rise in non-food inflation is mainly due to a rise in the prices of alcohol and tobacco, khat, housing repair and maintenance, firewood and charcoal, medical care, and gold, according to the report. Last month the Ministry of Trade & Industry made a price amendment to the retail price of fuel. The price of benzene was increased by almost two Birr a litre, while diesel prices exhibited an increase of 0.3 Br a litre.

The month-on-month general CPI for January, which measures the price change between the two most recent months, has shown an increase of 1.6pc compared to December.

The income of people is also fluctuating since many people engage in informal business, which is known for seasonal income, according to Getachew.