Ethiopian Industrial Input Development Enterprise (EIIDE) announced that it was working to resolve the shortage of industrial inputs in the country. For the current fiscal year, EIIDE has plans to purchase industrial inputs worth Birr 2 billion from the domestic market and import other industrial inputs at a cost of USD 18.9 million to supply the inputs to companies.
The Ethiopian Industrial Inputs Development Enterprise (EIIDE), which was established four years ago, said the low performance of the manufacturing sector was attributable to its inefficient capacity. The manufacturing sector shows low performance mainly because of shortage of inputs supply.
Ethiopia's inflation rate has picked up pace in June mainly driven by surge in prices of non-food items, the Ethiopian Central Statistics Agency monthly inflation report indicated last week.
The Consumer Price Index grew at an annual rate of 7.4% in June compared with 6.3% in May, the first month of increase after a steady decline over the last year.
The inflation rate in Ethiopia has declined from 40% to 19% as a result of measures taken by the government to stabilize the market said Prime Minister Hailemariam addressing the House of Representatives yesterday.
The government has subsidized the export of staple food products such as wheat and food oil and has overseen the equitable distribution to stabilize the inflationary pressures.
The government will continue to take steps to stabilize the inflation rates even further to reach single digits by the end of the financial year said Hailemariam. The anticipated bumper agricultural harvest project this fiscal year will also contribute towards overcoming price hikes he added.
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.
