Ethiopia’s July Inflation Surges to 39.2%

Nonsensical double-digit growth with 39.2% inflation and 4 Million people in dire need of emergency food: Ethiopia

By Daniel Berhane,

Ethiopia’s inflation rate climbed to 39.2% in July 2011 as compared to similar month last year, according to yesterday’s report released by Ethiopia’s Central Statistical Agency. Prices of food items surged by 47.4 %, while the non-food inflation increased by 27.8 % in July 2011 as compared to the prices of July 2010.

The breakdown of the General Consumer Price Index indicates price levels increased as follows:

  • Food by 47.4 %
  • Beverages by 27.0%
  • Cigarettes and Tobacco by 44.8 %
  • Clothing and Footwear by 35.5 %
  • House Rent, Construction Materials, Water and Fuel and Power by 22.7 %
  • Furniture, Furnishings, Household Equipment and Operation by 29.6 %
  • Medical Care and Health by 12.8 %
  • Transport and Communication by 44.3 %
  • Recreation, Entertainment and Education by 32.3 %
  • Personal Care Effects by 43.0 percent and Miscellaneous Goods by 12.4 %

The 47.4 % increase in Food index is due to increases in the prices of:

Cereals (42.1 %), Pulses (82.1 %), Bread and Other Prepared Food (19.5 %), of Meat (32.2 %), Milk, Cheese and Eggs (36.2 %), oils and Fats (90.2 %), Vegetables and fruits (25.3 %), Spices by (45.4 %), Potatoes, Other Tubers and Stems (44.4 %), Coffee and Tea Leaves (104.8 %), Other Food Items (9.5 %), Milling Charge by (15.8 %), and Food Taken Away from Home (33.3 %) respectively.

However, the rate of Food inflation is slower rate than the rate of increase observed last month, according to the report.

At regional level, the July month Geneal Consumer Price Index (as compared to July 2010) increased as follows:

Addis Ababa 30.1 %, Afar 34.4 %, Amhara 37.3 %, Benishangul Gumuz 54.7 %, Dire Dawa 32.4 %, Gambella 42.7 %, Harari 30.8 %, Oromia 41.5 %, SNNP by 47.5 %, Somali 40.8 %and Tigray 26.8 %.

On the other hand, food inflation at regional food inflation had been:

Addis Ababa 27.4 %, Afar 30.6 %, Amhara 40.3 %, Benishangul Gumuz 76.8 %, Dire Dawa 39.6 %, Gambella 54.8 %, Harari 33.5 %, Oromia 51.2 %, SNN¬P 64.7 %, Somali 49.1 %and Tigray 24.7 %.

The 12 months Moving Average Inflation at Country Level

The report also indicated that the country level overall inflation rate (annual change based on 12 months Moving Average) increased by 20.9 % in July 2011 as compared to the one observed in a similar period a year ago.

The 12 months moving average indicates prices of food items surged by 19.8 %, while Non-food inflation rate increased by 22.6 %in July 2011 as compared to the 12 months Moving Average recorded in July 2010.

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