The Central Statistics Agency’s monthly inflation data report measured by the consumer price index showed that the annual inflation rate as of January 2021 increased to 19.2 percent higher than the same month last year.
According to the latest report from the Central Statistical Agency, the price index for January has shown increase when compared to last year which was 18.7 percent in January 2020. Likewise the figure has shown 1.6 percent increase when it compares with last month inflation rate.
As a result of the current situation the inflation stands at 19.2 percent. This main upward pressure came from both food and non-food components. On similar lines, food inflation in January 2021 stood at 23.1 percent showing increase in comparison with last year which was 22.0 percent.
During this month, price of most of the grains, vegetables and some grains has shown increase. Prices for sugar, cooking oil, spices, potatoes and coffee has shown increase contributing to inflation as the agency explained. Food component prices with a special focus on teff, maize, and sorghum have shown massive price increase in the market from previous times. Inflation was even higher in the current month, as the price of the same month last year was relatively low compared to the current year. On January 2020, the total food inflation rate was 22.0 percent. On a slight shed of light, the food components have shown increase from December 2020 through January that is from 21.3 to 22.0 to currently 23.1 percent.
On the food-items front, even if the government is working aggressively on the domestic production of items such teff and wheat, so that the public gets enough production at a lower cost the price in the market is going up from day to day. The recent re-imposition of tax and duties on edible oil has also disturbed the market.
0n the other hand, non-food index inflation in January 2020 stood at 14.5 percent. The non-food items have shown a considerable increase in comparison with last year same period. The rise in the price of nonfood products including Khat, Home Care and Energy (Fuel and Charcoal), Furniture, Medical, Transportation (Fuel) are the main reasons for the increase of the inflation rate over the same period last year. The price increase for jewelry has also played a role in the growth of the inflation rate as the agency stated.
The annual inflation rate from July 2018 – June 2019 and July 2019 – June 2020 stood at 12.6 and 19.9 percent respectively. On December 2020, the general inflation rate stood at 18.2 and it is currently at 19.2 percent.
It is worth noting that throughout the months of 2020 the inflation rate mostly stood above 20 percent. This sharp rise will continue to soar until drastic and effective implementations are undertaken, so it seems.