Consumer price inflation in Ethiopia decreased from 19.9% in June (year on year) to 18.6% in July. Food price inflation fell from 22.7% to 20.6%. Consumer Price Index shows the change in the prices of a basket of goods and services that are typically purchased by specific groups of households.
In July, the National Bank of Ethiopia announced that the country’s inflation rate for the month of June had dropped to 19.9 percent. Inflation was 29.3 percent in June last year. The bank mentioned that the inflation of non-food items had decreased from 31.4 percent to 15.3 percent. The inflation of food items also dropped from 28 percent to 22.7 percent in June month last year.
While June and July statistics show that inflation is going down, August could tell a different story altogether. A week ago, Ethiopian government announced new macro economic reforms leading to around 90% devaluation of Ethiopian currency birr. The declining value of birr against dollar could lead to rise in inflation if the government does not announce subsidies or enhance production.
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Who believes the Government statistics. The truthnis far than what they mentioned.
Let’s see the enhanced production and subsidies. Then we can talk about decrease in inflation.