Note that this is the third consecutive monthly decline since May 2022. And it was aided by a slight improvement in the cost of food.
In specific terms, Ethiopia’s food inflation declined to 33.2% compared to 35.5% in July. However, non-food inflation rose to 31.5% from 30.4%.
Ethiopia’s inflation picked up pace in April 2022 after accelerating from 34.7% in March to 36.6%. By May, it increased further to 37.2%, the highest level recorded since 2011.
Despite this, Ethiopia still has one of the highest inflation rates in Africa. A previous article by Business Insider Africa listed these ten African countries with the highest inflation rates: Sudan, Zimbabwe, Ethiopia, Angola, Sierra Leone, Ghana, Nigeria, South Sudan, Zambia and Sao Tome & Principe.
According to Investopedia, inflation occurs when there is a decline in the purchasing power of a currency. It is measured by the rate at which the prices of goods and services rise within a particular period.
A sharp increase in the cost of raw materials is often one of the primary causes of inflation. A surge in demand for goods and services can also trigger an upsurge in prices, thus leading to high inflation.