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Inflation Rate Drops For Three Consecutive Months

ADDIS ABABA – The Ethiopian inflation rate has continued to decelerate for the third consecutive months as food prices increase at a relatively slow rate in August.

In its monthly report, the Central Statistics Agency says the inflation situation in Ethiopia was “relatively in a better situation” in August as compared to the challenging situations both at national and international levels.

The year-on-year inflation rate has dropped to 32.5% from 33.5% in July, according to data from the Central Statistics Agency.

The reason why inflation declined in August 2022 was due to the relatively higher inflation rate recorded in the same month last year.

A relative stability in food prices was observed last month, says the report, adding food-price growth slowed to 33.2% from 35.5% in July.

The agency says some cereals such as rice, wheat, maize and imported cooking oil showed a slight decrease while vegetables Garlic and Onions showed rapid price increase.

Local Cooking liquid Oil, butter, Coffee beans and non-alcoholic beverages prices also increased last month.

Non-food items’ Prices Getting higher

As per the Agency’s report, the Non-Food inflation has continued its recent increasing trend and reached 31.5% in August from 30.4% in the previous month.

The rise has been attributed mainly to rise in the prices of Alcohol and Tobacco, Clothing and Footwear, Housing Repair and Maintenance including House rent, Cement and Corrugated Iron sheets.

Energy (Firewood and Charcoal), Furniture and home furnishings, Fuel, Medical care and Jewelry (Gold) are also among the nonfood items that showed price increase, the agency observes.