Ethiopia continues to experience its worst food inflation in over a decade, reaching 43 percent last month.
A major setback for the government that is already struggling to keep the economy on track, this is yet another evidence showing an attempt by the government to tame the alarming growth of the inflationary pressure through policy and administrative measures bore no fruit.
Headline Inflation reached 34.8 percent, the highest since in over 10 years and is against the policy of the government to keep it in a single digit.
The 20 percent annual depreciation of Birr against major basket of foreign currencies, coupled with unmatched growth of supply and demand of major food items, is the major factor behind the inflationary pressure.
