Ethiopian Inflation Slows to 55.4% in October, Agency Says

November 24, 2008

By Jason McLure

Nov. 24 (Bloomberg) — Ethiopia’s annual inflation rate declined to 55.4 percent in October from 59.6 percent in September, the Central Statistical Agency said.

Food prices increased by 72.3 percent, slower than the annualized rate of 80.9 percent in September, the Addis-Ababa- based agency said in a statement on its website today.

October was the third consecutive month of lower inflation, led by a slowing in the price of food. Part of the decline is also due to the distribution of subsidized grain in urban areas by the Ethiopian government, the statement said.

Rising domestic demand, fueled by foreign aid and higher rates of remittances from Ethiopians overseas, had led to higher inflation in the African country, said Kenicha Ohashi, the World Bank’s director for Ethiopia and Sudan, on Nov. 20. Ethiopia’s annual inflation rate stood at 18.8 percent in October 2007, according to the statistics agency.

Source Bloomberg