INFLATION: 11 months and rising


Rapid rise in prices across Addis Ababa City and Oromia Region, have seen inflation on the upturn for the eleventh consecutive month since the last decrement in October 2014, according to the September consumer price index released this week by the Central Statistical Agency (CSA).
The report stated that the inflation rate for September stood at 11.9 percent, 0.3 higher than the rate for August, which stood at 11.6.
Compared to September 2014, the general year-on-year inflation for September of this year has increased by 11.9 percent “The 11.9 percent rise in general inflation rate is due to the fact that the general Consumer Price Index of 148.5 percent observed in September 2015 was higher than the corresponding 132.7 percent General Consumer Price Index observed in September 2014,” the CSA report explained.
Rocketing food prices were indicated to significantly contribute for rising inflation. The food inflation for September stood at 16.1 percent, while it was 14.7 and 13.9 percent in August and July respectively. The rate at which inflation is increasing is also on the rise with inflation rising by 0.8 percent from July to August and by 1.4 percent.
The report stated that the month of September is a time of New Year and various religious and cultural festivals in Ethiopia and during this month price increases were observed mainly in food products. Specially; Meat, Milk, Cheese and Egg, Oils and Fats, Pulses (especially Lentils) Fruits and Spices (specially pepper whole) rose in the month under review.“The 152.3 percent Food Consumer Price Index observed in September 2015 was greater than the corresponding 131.3 percent Food Consumer Price Index observed in September 2014,” the report elaborated.
Even though non-food inflation has registered growth compared with September 2014, it has registered decreases for second consecutive months since last August.
The September non-food inflation is 7.5 percent, down from 8.2 percent in August, while non-food inflation stood at 9.7 percent in July from 8.2 of June.
The CSA report stated that the country level overall inflation rate (annual change based on 12 months Moving Average) rose by 9.0 percent in September 2015 compared to rates observed in the same period a year ago.