The Ethiopian government is taking measures to reduce the rate of inflation to single digits this fiscal year according to the National Bank.

The government has stopped borrowing from the central bank as part of the effort to reduce inflation explained bank executives speaking to the Budgetary and Finance Standing Committee of the House of Peoples' Representatives on Monday.

The National Bank is also working to reduce inflation rates by trying to minimize the supply of money to the market through physical and monitoring mechanisms said the executives.

The central bank has also been able to decrease the amount of foreign currency in the national reserve from amounts covering 3.1 months of the country's demand to 2.9 months.  

It is to be remembered that the Ethiopian statistics agency announced on Friday that the annual inflation rate fell to 39.8% in October. This is a decrease from the 40.1% inflation recorded last month according to the statement by the agency.

Food prices, however still increased this month largely due to the price of cereals according to the Statistics Agency. The total price index of cereals has seen an increase of 63.1% in comparison to the same month last year explained the agency.

Source: Ethiopian Press Agency