Ethiopia’s inflation rate dwindles for first time in four months

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Ethiopian Statistics Agency (ESA) announced Tuesday that nation’s inflation rate has decelerated in June 2022 for the first time in four months as food prices increased at the slowest pace since August 2021.

The annual inflation in Ethiopia has declined to 34% in June to 37.2% in May, 2022.

Food inflation, on the other hand, slowed to 38.1% from 43.9%, while non-food inflation rate stood at 28.4%, according to a report from Walta Media and Communication Corporate S.C.

The consumer-price growth, remains near the highest level in at least nine and half years, and inflationary pressures may pick up further after the government said it plans to halt fuel subsidies and announced a 38% increase in the cost of fuel last week.

The economic impacts of the war in northern Ethiopia, drought in parts of the country, desert locusts and the Covid-19 pandemic and the devaluation of Ethiopia’s Birr in terms of US dollars contributed to the skyrocketed inflation.

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