Headline inflation, the indicator of the cost of living, has stagnated in the double-digit range with a slight increase in July to 15.5pc.

This is a 0.1 percentage point increase from June, which recorded a 15.4pc rate, and is the second-highest rate over the past year, according to data from the Central Statistical Agency.

July saw both food and non-food inflation rates increase slightly to 20pc and 10.3pc, respectively, from June, which registered 19.8pc for food and 10.2pc for non-food inflation.

The price of major cereals, such as teff, rice, barley, wheat, sorghum and maize, has increased in the past month, indicates the report. The price of bread has also registered a slight increase.

“The expected decline in the price of maize during the rainy season was not realised, since it continued increasing from month to month,” reads the report.

Some vegetables and pulses, such as Ethiopian kale, cabbage, tomato, green pepper, potato, horse beans and peas, showed a continued decline, according to the report.

Price increases for clothing and footwear, house rent, housing repair and maintenance, energy, household goods and furnishings, health care and transport, especially automobile transport, pushed up the rate of non-food inflation.

Even though the government has been able to mostly stabilise the inflation rate, it has shown a fast increase since May, according to Prime Minister Abiy Ahmed (PhD), who briefed members of the media two weeks ago. He also added that the country had been challenged with double-digit inflationary pressure over the past 15 years.

“Agricultural productivity was not growing at the same pace with the economy, and the population was growing,” he said. "The economic policy approach was also based on aggregate demand."

In the short term, the government is working on securing sufficient supply of wheat and oil, which are scarce and causes of inflation, ahead of time, according to the Prime Minister.

“El Niñodidn’t occur, and summer rain was good," he said, "so we expect agricultural productivity to grow this harvesting season."

However, Alemayehu Geda (Prof.), a macroeconomist and university lecturer, predicts the rate will even increase in the coming two months.