The price of food rose to 40.7 percent in May from 32.2 percent in April according to Central Statistical Agency’s (CSA) consumer price index released on Tuesday, 14 June 2011.The prices of most food items, especially, barely, butter, coffee, maize, pepper, pulses, teff, wheat and others rose in May 2011 as compared to May 2010, the consumer price index indicates.
Food price was deflating at the beginning of the current fiscal year. But since September prices have been escalating after the birr was devaluated against the dollar by 17 percent. The overall annual year on year inflation has now reached the two-year mark.In May this year, the annual inflation had reached 34.7 percent from 29.5 percent in April. The latest figures follow the decision at the beginning of this month to lift the price cap imposed on 15 of the 18 consumables whose prices were set by the government since January.
After assessing the situation in Ethiopia, the International Monetary Fund mission three weeks ago said that rising prices would slowdown the country’s economic growth. IMF’s prediction put Ethiopia’s economic growth for the coming fiscal year at around six percent which contrasts with the government’s estimate of 11 percent.