The Ethiopian government will be importing over 400,000 tons of wheat to help address the high rate of inflation, senior economic advisor to the Ethiopian Prime Minister said.
Mamo Esmelealem, macroeconomics advisor to the Prime Minister, said "inflation remains the major challenge we have not [yet] solved" despite positive changes the home-grown economic reform brought about during the last three years. Mr. Mamo pointed out the $3.6 billion secured from exports, and 64 percent rise in foreign direct investment as achievements of the economic reform.
Speaking of the reason behind the shapr inflation, the advisor mentioned the gap between demand and supply and the global rise in the price of commodities. He pointed out iron bar prices have rose by 32 percent, petroleum by 41 percent, and food commodities by 13 percent globally.
The 400,000 tons of wheat the Ethiopian government bought will help lessen the burden of inflation, Mr. Mamo indicated. Out of this, 18,000 tons have already arrived and are stored in warehouses. The remaining wheat will begin to arrive in September this year.
Moreover, 53.9 million liters of edible oil and two million quintals of sugar will be imported to help address the inflation.
On a related note, the Ethiopian Ministry of Trade and Industry said the government "will continue to take actions" on those involved in illegal marketing practices that are worsening inflation and associated socio-economic problems.
Sources: ENA, The Ethiopian Monitor
