September 14, 2011

Inflation in Ethiopia Jumps to 40.6 % in August

Filed under: Ethiopia — ethiopiantimes @ 4:08 pm

Ethiopia’s year-on-year inflation jumped to 40.6 percent in August from 39.2 percent in July as food prices, especially those of cereals went up, the Central Statistical Agency said on Tuesday.

Early in August, the agency had said that Ethiopia’s inflation rate climbed to 39.2 percent in July from a year earlier.

Inflation accelerated from 38.1 percent in June, according to the agency. Food prices increased by 47.4 percent in July after rising 45.3 percent in the previous month, while the cost of non-food items fell from 27.9 percent to 27.8 percent, it said.

In May the annual rate of inflation in Ethiopia had risen to 34.7 percent from 25.6 percent in April as food prices climbed, according to the agency. Food prices had increased by 41 percent in the year, compared with a 32.2 percent increase in April, the agency said.

The international Monetary Fund had predicted on 31 May 2011 that inflation might undermine economic growth in Ethiopia. IMF had said that the economy would fall from 7.5 percent this year to 6 percent in the 2011/2012 fiscal year and that the country’s monetary policy was pushing up inflation which, combined with restrictions on bank lending, would in turn bring about a slower economic growth.

On the other hand, Hailemariam Desalegn, deputy prime minister of Ethiopia, had said on 8 June 2011 that Ethiopian economic growth might exceed 10 percent contrary to the IMF’s May 30 prediction.

Source: Reuters


1 Comment »

  1. Amaizing

    Comment by Salem — October 10, 2011 @ 5:15 pm | Reply

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