The Ethiopian year-on-year inflation rate for November lowered to 39.2% from 39.8% in October according to official data released this week.
Consumer prices fell by 0.3% as compared to October, showing a decrease for the first time in nine months. Inflation for food items lowered from 51.7% in October to 50.3% in November.
Price pressure particular eased for items such as fruits and vegetables, spices, pulses, sorghum, maize explained the statement from the Central Statistics Agency.
The rate of inflation for non-food items showed an increase from 23.4% in October to 24% last month.It is to be remembered that the Ethiopian government’s plan to reduce inflation to single digits came under criticism from the international financial institutes.
The international Monetary Fund had predicted on 31 May 2011 that inflation might undermine economic growth in Ethiopia. IMF had said that the economy would fall from 7.5 percent this year to 6 percent in the 2011/2012 fiscal year and that the country's monetary policy was pushing up inflation which, combined with restrictions on bank lending, would in turn bring about a slower economic growth.
The inflation is something that the Ethiopian government has taken into consideration and is working towards alleviating says Meles Zenawi Prime Minister of Ethiopia. The high rates of inflation were caused by multiple challenges including the effects of the global market he explained.
Source: Reuters
