Measured by the consumer price index, the annual inflation rate as of September 2020 stood at 18.7 percent.
According to the latest consumer price index report from the Central Statistical Agency, despite the figure reducing from the preceding months, the figure in comparison to last year’s exact month still shows increase. That is from 18.6 percent to 18.7 percent. It is worth noting that throughout the months of 2020 the inflation rate mostly stood above 20 percent. This main upward pressure came from both food and non-food components.
Food component prices with a special focus on teff, maize, and sorghum have shown massive price increase in comparison to last year. This comes in a critical time as the country continues to struggle with the effect of the locust swarms, the COVID-19 pandemic and flooding. The bombarding effect of heavy rainfall has led to floods which has destroyed crops as well as livestock whereas the swarm of locusts has destroyed pasture and crops. On similar lines the pandemic outbreak has reduced the population’s income and has restricted movement.
On a slight shed of light, the food components have shown progressive decrease from July through September 2020 (that is from 24.9 to 22.0 to currently 21.2 percent). This is also comparatively lower than 2019 September figures of 23.3 percent. In 2019, the rise in price of red pepper had significantly contributed to the inflation both then and now. However, the report also reads that some food items including fruits and pulse have shown decrease which has resulted in current decrease in this section of inflation.
The other contributor to inflation, that is, the non-food items, has shown a considerable increase in comparison to September of 2019. The percentage of inflation is up from 13.1 to 15.5.
“The rise in the price of nonfood products including the soaring price of alcohol and tobacco, khat, housing repair and maintenance, energy, and medical care are factors that have played a role in the growth of the inflation rate,” the agency explained. Additionally, the inflation has been caused by the hike in gold and other ornaments.
With regards to combating the inflation the government is playing an instrumental role in cleaning up informal mining by channeling gold sales through the central bank thus attracting more investors in the process. The Central Bank is also offering higher prices in order to mop up gold to control illegal smuggling. Similarly, on nonfood items the government is working on stabilizing the Cement market which is an integral component in the construction industry.
On the food-items front, 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 government is also striving to remove tax and duties from imported edible oils.
The annual inflation rate from July 2018 – June 2019 and July 2019 – June 2020 stood at 12.6 and 19.9 percent respectively. This sharp rise will continue to soar until drastic and effective implementations are undertaken, so it seems.

Ethiopia has unveiled a new police doctrine at a ceremony held at the Sheraton Addis on Friday October 9.
Speaking at the event, Muferiat Kamil, Minister of Peace said that police should be impartial and serves the public. Endeshaw Tassew, Federal Police Commissioner, said the doctrine was needed to address weaknesses, ensure rule of law and build modern police force. Preparation of the doctrine took two years, it was noted.

COVID-19, flooding and the locust outbreak are said to be creating a humanitarian crisis in Ethiopia with many people unable to meet their daily food needs, according to the International Rescue Committee (IRC).
“Recent heavy rainfall has led to flooding, resulting in destruction of crops, loss of livestock and displacement. Swarms of multiplying desert locusts have also been destroying pastures and crops, leading to further food insecurity. Some areas are recording admissions for severe acute malnutrition at 50% higher than for the same period last year. A massive twelve fold increase in Covid-19 cases between June and September is further compounding needs as families have been unable to obtain income or access food due to movement restrictions,” reads a statement from IRC. Ethiopia currently holds the highest Covid-19 caseload in East Africa.
The statement further said that IRC is working to safeguard the lives of affected and at-risk communities from the COVID-19 pandemic by raising community awareness on COVID-19 risk factors, providing personal protective equipment, and building and installing water points to help people practice preventative methods. “The IRC is assisting desert locust and flood-affected households with multi-purpose cash transfer and non-food items to fill food security gaps and provide relief,” the statement states.
“The multiple issues of flooding, locusts, intercommunal violence and COVID-19 are highly concerning given the already massive humanitarian needs in the country. The slowdown of the economy and lockdown restrictions mean that people have not been able to access income and there is an upward pressure on food prices,” said Frank McManus, IRC Ethiopia Country Director.
“Over 19 million people are in need of humanitarian assistance in Ethiopia. At four times the number of people displaced in 2019, as a result of the flooding, more than 300,000 people have been displaced in 2020 and have had their homes and livelihoods lost or damaged. A total of over 1 million people have been adversely affected by the floods overall. With the spread of COVID-19, people that have been displaced are amongst the most vulnerable due to the often congested living space, compromised health conditions, and inadequate access to basic services. The IRC is providing essential support through distributions of non-food items, including emergency shelter, household goods, hygiene kits, and cash assistance to over 36,500 affected people.”
“Despite the IRC’s work, the unmet humanitarian needs are still great. With more funding for our work, we will be able to reach even more people with the critical support they so desperately need after losing their homes and livelihoods.”
Ethiopia is one the poorest countries and has suffered decades of drought, intercommunal violence, disease outbreaks and flooding. Whilst grappling with its own development and humanitarian needs, Ethiopia is also a major host country for refugees in the region. In a highly complex humanitarian setting with seven million people who are acutely food insecure, IRC is working to ramp up support to those most in need.
The IRC has been working in Ethiopia since 1999 implementing emergency and development work in rural communities and 21 refugee camps, reaching over 3.2 million clients through programs in environmental health, health, education, child protection, economic recovery and development, and women’s protection and empowerment in six regions across the country.