Annual inflation rate in Ethiopia fell to 35.9% in December following a decline in some food costs reported the Ethiopian Central Statistical Agency.
Prices increased by 1.7% during December with food prices climbing by just 0.2% due to a decrease in the price of some pulses and cereals said the Agency.
The inflation rate could fall under 10% by June following reduced lending by the National Bank and annual crop harvests reaching the market according to Access Capital, an Ethiopian research group.Prices for the construction industry have been reduced by lower cement prices following increased production in the country according to Zemedeneh Negatu, Managing partner Ernst and Young LLP in Ethiopia.
Achieving an inflation rate under 10% shouldn’t adversely affect economic development but needs to be gradual and steady noted Zemedeneh.
It is to be remembered that the Ethiopian year-on-year inflation rate for November lowered to 39.2% from 39.8% in October according to official data released this week.
Consumer prices fell by 0.3% as compared to October, showing a decrease for the first time in nine months. Inflation for food items lowered from 51.7% in October to 50.3% in November.
Price pressure particular eased for items such as fruits and vegetables, spices, pulses, sorghum, maize explained the statement from the Central Statistics Agency.
The rate of inflation for non-food items showed an increase from 23.4% in October to 24% November.
Source: Bloomberg
