The inflation rate in Ethiopia is expected to decrease to less than 10% by November according to Ethiopian Prime Minister Meles Zenawi.
It is expected that the inflation rate will continue to decrease according to the trend seen in March and is projected to reach single digits by November said Meles.
The annual inflation rate in Ethiopia slowed to 32.5% in March from 35.3% in February according to the Central Statistics Agency.
Food prices rose by 40.9% in March as compared to the same time last year, which is lower than the 47.4% increase seen in February. Non food inflation also eased rising 20.4% year on year as compared to 21.5% the month before.Consumer prices month on month rose by 4.6% in March from 2.7% the previous month according to the report from the agency.
It is to be remembered that the National Bank of Ethiopia has been engaged in efforts to stabilize the market and foreign currency exchange rate in the past seven months according to Teklewolde Atnafu, Governor of the bank.
The bank has initiated a range of activities to maintain an effective financial system to contribute to the national economic growth said Teklewolde in the performance report he presented to the House of People’s Representatives.
Further policies to supervise the amount of loans being given to the government, to regulate interest rates and bid bonds were also implemented in the reporting period noted Teklewolde.
Source: Bloomberg
