Inflation declined in Ethiopia to 13.7 percent despite the price uplift in clothing, footwear, house repair and maintenance equipment.

According to the Central Statistical Agency (CSA), the previous month (March) inflation declined by 1.5 percent as a result of price fall for food items that showed a 3.9 percent drop. Non-food inflation had a modest rise of 0.8 percent.

Whereas the prices of major cereals like pulses, pepper, vegetables and fruits decreased slightly, construction materials such as iron sheet and steel increased by 50 percent and cement increased by 24 percent. Concerning non fasting food and dairy products, a consumer price index from the CSA showed an increment due to the end of the 55-days fasting season.

The inflation rate of Ethiopia has reached a peak level of 64.2 percent in July of 2008 and to a lowest level of -4.1perecent in September of 2009. The rate has been in the double digits since August 2017 and it further showed a fast increase since October 2017. As part of an effort to minimize the impact of inflation, the National Bank of Ethiopia increased minimum deposit interest rates from five to seven percent. To control the rising rate, the government has created and organized different task forces to facilitate researches and recommend solutions.

Source: Addis Fortune