In November 2021, Central Statistical Agency (CSA) reported, the year-on-year General inflation rate in Ethiopia decreased to 33.0Pc in November 2021, after reaching 34.2Pc in the previous month. The month-on-month food inflation rate for November 2021 decreased by 1.8 percentage point compared to the preceding month of October 2021, CSA report showed. During a similar period, the non-food inflation rate increased by 1.0Pc.
Historical long-term seasonal inflation trend shows that food prices during the next 3-months of harvest period is expected to decline.
Food Inflation in November 2021
According to the report, year-on-year Food inflation has increased by 38.9Pc in November 2021 as compared to the one observed in November 2020.
In the month of November 2021; cereals, Vegetables and pulses showed a decline in most cases. Rice, Teff, Wheat, barely, maize and Sorghum showed a decline in their prices. Meat, Milk, Cheese and Eggs, and Spices (mainly salt and Pepper) slightly declined in the report period. Cooking Oil and butter prices declined slightly. Coffee beans and non-alcoholic beverages prices have also increased during the month.
Non-Food Inflation in November 2021
The Non-Food inflation showed an increase of 25.2Pc in November 2021 as compared to the one observed in November 2020.
The rise in Non-food Inflation in the mainly due to rise in the prices of Alcohol and Tobacco, Stimulants (Chat), Clothing and Footwear, Housing Repair and Maintenance (House rent, Cement and Corrugated Iron sheets), and Energy (Firewood and Charcoal), Furniture and home furnishings, Medical care and Jewelry (Gold).
In November, region wise, Addis Ababa city, Amhara, Oromia and SNNP showed a declining price situation than the other regions showed CSA monthly report update.
Consumer Price Index (CPI)
The November 2021 Country Level Consumer Price Index has increased by 33.0 percent as compared to November 2020. However, the month-on-month general CPI for November 2021 has showed a decline of 0.6 percentage points and the food consumer price index declined by 1.7 percentage points as compared to the preceding month of October 2021.
During the same period non-food CPI showed 1.0Pc increase.
The monthly inflation rate measures the price change between the two latest months. Although up to date, it can be affected by seasonal and other short-term effects.
The Consumer Price Index (CPI) measures the average change in the price paid by consumers for a fixed market basket of goods and services. It is usually based on household expenditure weights of the goods and services in the basket and their current market prices.
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