Food Inflation in Ethiopia Mounts to Double Digit

BY NEW BUSINESS ETHIOPIA REPORTER –

Food inflation in Ethiopia jumps to 13.6 percent for the month of January 2011 from 8.9 percent in December 2010, the data released this week by the Central Statistics Agency (CSA) reveals.

The year-on-year Food inflation has increased by 13.6 percent in January 2011 as compared to 0.4 percent in January 2010. The reason for the increase in the food Inflation rate was that the 211.3 percent Food Consumer Price Index (CPI) observed in January 2011 was greater than the corresponding 186.0 percent Food Consumer Price Index (CPI) observed in January 2010, according to CSA’s explanation.

“In the recent months, most of the food components have shown a rise in their indices. Specially, the indices of Wheat, Barely, maize, Pulses, Oils and Fats, and Coffee and Tea leaves have relatively showed a rising trend,” the agency noted.

However, the total price index of cereals in January 2011 has declined by 7.6 percent as compared to similar month last year. The indices of Vegetables (especially Onions and Garlic), Pepper whole and Spices and Other food items has relatively increased in January 2011.

Country level non-food inflation has also increased by 23.7 percent in January 2011 from 22.9 percent the previous month and 20.3 percent January 2010. General year-on-year inflation has increased by 17.7 percent as compared to 14.5 percent the preceding month and 7.6 percent in January 2010.

It is recalled that last month, the government has fixed maximum retail prices of 18 major food and non-food commodities. To reduce the impact of inflation and reduce the number of citizens living iunder poverty, Ethiopian government has also increased salary and pension of civil servants.

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Posted by on February 10, 2011. Filed under FEATURED,NEWS. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.