Capital Ethiopia Newspaper

Food prices continue to rise as survey predicts inflation relief

Access Capital that released a price database survey of 184 goods during 2011expects some price relief for consumers by this April. 
This is because they expect inflation to decrease to single digits by the middle of 2011 while at the same time credit and liquidity conditions are expected to improve.
Still out of 184 surveyed commodities 73 are expected to increase in price.
Ethiopia’s staple food Teff has been rising alarmingly in recent years. The more common white Teff has increased to roughly 1300 birr from 1000 birr per quintal while black Teff price has increased to 1100 birr per quintal from roughly 780 birr.
The most dramatic price increase has been in fruits like bananas and oranges, and in oxen and sheep costs.
The Price of bananas and oranges doubled during the period January 2011 to January 2012. Bananas sold for 15 birr and oranges for 10 birr per kilo. Oxen experienced an astounding 252 percent increase in price from 6,250 to 22,000 birr; The price of a full grown sheep increased by 95 percent reaching 1300 birr.
The price range for medium and large bus transportation ranged from a decrease of nine percent to increase of 114 percent depending on the type of bus and range of travel.  Taxi transportation went up between 23 and 30 percent.
Sales of  G+1 remained steady while rent prices of similar homes rose around ten percent. 
Meanwhile, according to the survey by April, onions and potatoes prices are expected to decline 44 and 17 percent respectively. Meat price is expected to remain unchanged.
However Teff and milk are expected to show a modest price increase of nine percent as peas for shiro increase by six percent. Beer price is projected to remain unchanged. 
A rather surprising conclusion of the survey was with regards to urban land lease prices as well as residential house sale rentals. It does not appear to take into account the ubiquitous price speculation, particularly in Addis Ababa nor does it address uncertainties surrounding the new controversial land lease law.
Another perplexing finding of the Access Capital survey was the expectation of stable prices for fuel, water and energy.
On a positive note the survey found that cement particularly the Mugher Ordinary Portland Cement (OPC) which had shown a 33 percent decrease in price per quintal is expected to decrease by a further seven percent by April 2012. Other construction items are generally expected to show minor price increases of not more than 1-10 percent during the projected three month period.
Wage and salaries of accountants employed in the public sector are expected to show a 30 percent decline in real value of their income while the rest will remain constant,  according to the survey.