Inflation rate stands at 36.4 percent

Reporter, 18 July 2009 — As it is indicated in the June price index of the Central Statistical Agency (CSA), the country level overall inflation rate (annual change based on 12 months moving average) stood at 36.4 percent in June 2009.

This rate is 11.1 percentage points higher than the corresponding annual average rate of 25.3 percent at June 2008. Similarly, the country level food inflation rate stood at 44.2 percent and the country level non-food inflation rate stood at 23.7 percent in June 2009.

The 44.2 percent country level food inflation rate in June 2009 is 9.3 percentage points higher than that of 34.9 percent inflation rate at June 2008. This higher increase in the food inflation rate was due to the increase in price indices of the food components like cereals, pulses, meat, milk and eggs, vegetables and fruits, potatoes and other tubers and stems, other food items and food taken away from home.

The 12 months moving average general and food inflation showed a decline starting in March 2009 and continued the trend in June 2009. In this regard the general moving average inflation rate was 46.1 in February 2009 and consequently declined to 45.2 percent in March 2009, 44.3 in April 2009, 41.6 in May 2009 and 36.4 in June 2009.

In a similar way the food moving average inflation rate declined from 61.1 percent in February 2009 to 59.2 percent in March 2009, 57.2 percent in April 2009, 52.6 percent in May 2009 and 44.2 in June 2009.

The Non-food components of the Index declined by 09 percent as compared to the one observed last month. From the food components, the prices of cereals, fruits and vegetables and sugar are on the rise.

Among the non-food components, the prices of fuel, construction materials, clothing and footwear, furniture and furnishing and personal care and effects are increasing. However, as the figures indicate the increase in prices in recent months is much lower than the situation observed last year.

The data shows inflation rate based on comparison with last year’s figures. As can be seen from the report, the June 2009 general year-on-year inflation was 2.7 percent and it is less than the one observed in May 2009, which was 14.2 percent, showing a decline by 11.5 percentage points.

Similarly, the year-on-year food inflation declined from 11.6 percent in May 2009 to -3.4 percent in June 2009 which declined by 15.0 percentage points. The Non-Food inflation decreased by 3.7 points in June 2009 as compared to the one observed in May 2009.

According to CSA’s report, the June 2009 general inflation rate declined to 2.7 percent as compared to the 55.2 percent observed in June 2008. The main reason for the fall in general inflation was due to the decrease in the price of food components mainly cereals as compared to similar month of June in the previous year.

Similarly, the 78.3 percent food inflation rate observed in June 2008 declined to -3.4 percent in June 2009. In other words, the 188.6 percent food consumer price index (CPI) observed in June 2009 was less than the corresponding 192.2 percent food consumer price index observed in June 2008.

The June 2009 country level consumer price index increased by 2.7 percent as compared to June 2008. This increase was attributed to the rise in the indices of its components; namely: beverages by 25.3 percent, cigarettes and tobacco by 32.7 percent, clothing and footwear by 28.0 percent, house rent, construction materials, water and fuel and power by 8.8 percent, furniture, furnishings, household equipment and operation by 17.4 percent, medical care and health by 15.9 percent, transport and communication by 3.0 percent, recreation, entertainment and education by 17.8 percent, personal care effects by 24.3 percent and miscellaneous goods by 9.9 percent. On the other hand, the food index has declined by 3.4 percent.

CSA’s report indicates that the 3.4 percent decline in the food index was observed due to the fall in the indices of the components of food index namely: cereals by 10.8 percent, oils and fats 11.2 percent and spices by 61.2 percent. On the other hand, rises were observed in the indices of pulses 5.4 percent, bread and other prepared food 17.2 percent, meat 9.4 percent, milk, cheese and eggs 24.2 percent, vegetables and fruits 38.3 percent, potatoes, other tubers and stems 15.8 percent, coffee and tea leaves 5.9 percent, other food items 44.9 percent, milling charge by 13.4 percent, and food taken away from home 17.7 percent respectively.

The data also shows that the June 2009 general inflation rate declined to 2.7 percent as compared to the 55.2 percent observed in June 2008. The main reason for the fall in general inflation was due to the decrease in the price of food components mainly cereals as compared to similar month of June in the previous year.

Similarly, the 78.3 percent Food inflation rate observed in June 2008 declined to -3.4 percent in June 2009. In other words, the 188.6 percent CPI observed in June 2009 was less than the corresponding 192.2 percent CPI observed in June 2008.

The June 2009 country level general has increased by 2.7 percent as compared to June 2008. This increase was attributed to the rise in the indices of its constituent regions; namely: Addis Ababa 7.3 percent, Afar 5.8 percent, Amhara 1.1 percent, Benishangul Gumuz 6.9 percent, Dire Dawa 11.1 percent, Gambela 18.3 percent, Harari 11.9 percent, Oromia 3.3 percent, Somali 18.5 percent and Tigray 1.6 percent. On the other hand, a decline was observed in the index of SNNP by 1.2 percent.

The 3.4 percent decrease in the country level food index was observed due to the fall in the indices of the regions namely: Amhara 4.5 percent, Oromia 3.2 percent, SNNP 8.7 percent, and Tigray 6.2 percent. On the other hand, an increase was observed in the indices of Addis Ababa 3.0 percent, Afar 5.1 percent, Benishangul Gumuz 2.4 percent, Dire Dawa 9.7 percent, Gambela 16.2 percent, Harari 8.0 percent, and Somali 19.1 percent respectively.

Share Button
Disclaimer: We are not responsible for any losses or damages that may have caused by using our services. EMF declines all responsibility for the contents of the materials stored by users. Each and every user is solely responsible for the posts.
Posted by on July 19, 2009. Filed under 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.