ADDIS ABABA (HAN) June 28.2016. Public Diplomacy & Regional Security News. The country’s inflation rate was recorded at 7.9pc for the month of May, according to the latest report of the Central Statistical Agency.
The rate showed an increment largely due to an increase in food prices, the report underscored.
Butter, meat and vegetables especially, onions and garlic are the main products which showed a relatively high price increase. The impact of recent flooding in areas with a high yield of vegetable products was another factor contributing to the high inflation recorded last month.
During March and April 2016, the inflation rate recorded was 7.5pc and 7.4pc, respectively. Recently, the government adopted a policy to keep the average inflation rate at a maximum of eight per cent. However, the inflation rate in Ethiopia is expected to be 8.08pc for the month of June 2016, according to Trading Economics’ global macro models and analysts expectations.
Inflation was a major threat to macroeconomic stability during the first two years of implementing the first Growth and Transformation Plan.