Ethiopia’s Central Statistical Agency released yesterday the June 2011 Country Level Inflation Rate data. It provides both the monthly and annual inflation rates of food and non-food items. Here are summaries and excerpts of the data in the report.

Highlights

The June 2011 General year-on-year inflation has increased by 38.9 % in comparison to June 2010. Food items prices increased by 45.3 %, while non-Food items were priced 27.9 % more.

The major contributors to the General inflation rate were the price hikes in: Transport and Communication – by 44.6 %, Food – by 45.3 %, and Cigarettes and Tobacco – by 45.0 %

In the food category, the top three price hikes were observed in Coffee and Tea Leaves (113.3 %), oils and Fats (104.7 %), and Pulses (72.6 %).

The three regions which suffered most from the June 2011 General inflation are:

• Benishangul Gumuz – by 49.6 % General inflation and 71.2 % food inflation
• SNNPR (Southern Nations Nationalities Peoples Region) – by 46.5 % General inflation and 62.1 % food inflation
• Oromia – by 41.2 % General inflation and 50.7 % food inflation

Inflation based on comparison of Current vs. Last year’s similar month at Country Level

[The graph and table above show Inflation rate based on last year’s similar month comparison.]

· The June 2011 General year-on-year inflation has increased by 38.9 percent as compared to the one observed in June 2010.

The 38.1 percent rise in General inflation rate is due to the fact that the General Consumer Price Index (CPI) of 253.7 percent observed in June 2011 was higher than the corresponding 183.7 percent General Consumer Price Index (CPI) observed in June 2010.

· The year-on-year Food inflation has increased by 45.3 percent in June 2011 as compared to the one observed in June 2010. The reason for the increase in the food Inflation rate was that the 274.0 percent Food Consumer Price Index (CPI) observed in June 2011 was greater than the corresponding 188.6 percent Food Consumer Price Index (CPI) observed in June 2010.

The total price index of cereals in June 2011 has increased by 33.4 percent as compared to similar month last year which significantly contributed to the rise in the indices of Food and the General Consumer Price Index.

Relative rises were observed in the indices of most of the components of food, especially, Teff, Wheat, Maize, Barely, Pulses, Meat, Butter, Coffee & Tealeaves, Pepper whole, Potatoes, tubers and stems and others in June 2011 as compared to June 2010.

· The Non-Food inflation also increased i.e by 27.9 percent in June 2011 as compared to the one observed in June 2010.

However, the data reveals that the rate of increase in prices of the Food components of the index has been at a slower rate than the one observed in May 2011.

Disaggregated data

General inflation rate disaggregated by goods/services – at national level

The June 2011 Country Level Consumer Price Index has increased by 38.1 percent as compared to June 2010. This increase in the General Consumer Price Index is attributed to the rise observed in the indices of

• Food 45.3 percent,
• Beverages by 23.4 percent,
• Cigarettes and Tobacco by 45.0 percent,
• Clothing and Footwear by 35.7 percent,
• House Rent, Construction Materials, Water and Fuel and Power by 24.3 percent,
• Furniture, Furnishings, Household Equipment and Operation by 26.8 percent,
• Medical Care and Health by 11.5 percent,
• Transport and Communication by 44.6 percent, Recreation,
• Entertainment and Education by 27.9 percent,
• Personal Care Effects by 38.9 percent and
• Miscellaneous Goods by 12.4 percent .

Food inflation rate disaggregated by items – at national level

Most of the components of Food index showed increases as compared to similar month last year. Especially,

• Cereals (33.4 percent),
• Pulses (72.6 percent),
• Bread and Other Prepared Food (19.0 percent),
• Meat (19.1 percent),
• Milk, Cheese and Eggs (38.3 percent),
• oils and Fats (104.7 percent),
• Vegetables and fruits (40.5 percent),
• Spices by (51.4 percent),
• Potatoes, Other Tubers and Stems (56.2 percent),
• Coffee and Tea Leaves (113.3 percent),
• Other Food Items (9.6 percent),
• Milling Charge by (11.7 percent), and
• Food Taken Away from Home (30.0 percent).

General inflation rate at regional level

Comparison of CPI Movements, Current vs Last year at Country and Regional Levels displays that the June 2011 Country level General Consumer Price Index has increased by 38.1 percent as compared to June 2010. This increase was attributed to the rise in the indices of its constituent regions; namely:

• Addis Ababa 27.6 percent,
• Afar 35.2 percent,
• Amhara 34.5 percent,
• Benishangul Gumuz 49.6 percent,
• Dire Dawa 27.9 percent,
• Gambella 38.2 percent,
• Harari 31.9 percent,
• Oromia 41.2 percent,
• SNNPR by 46.5 percent,
• Somali 37.3 percent and
• Tigray 24.7 percent

Food inflation rate at regional level

The rise in the food index by 45.3 percent is due to the rise in the indices of the regions; namely:

• Addis Ababa 22.8 percent,
• Afar 33.8 percent,
• Amhara 36.3 percent,
• Benishangul Gumuz 71.2 percent,
• Dire Dawa 32.0 percent,
• Gambella 47.2 percent,
• Harari 34.3 percent,
• Oromia 50.7 percent,
• SNNPR 62.1 percent,
• Somali 42.3 percent and
• Tigray 22.7 percent.

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Changes: In the CSA’s document: the monthly data of May 2011 is stated as June 2011. It appears to be typo error. Thus, corrected in the graph and table above.

Download here CSA’s June 2011 inflation data.