Tariku Gankisi – Dishtagina

Unresolved inflation of Ethiopian market

Inflation has been steadily rising since Ethiopia’s economic growth. Inflation in the Ethiopian market has risen sharply since 1998. Twice there has been inflation. One was in 1998. It had a rate of up to 40 percent. Global inflation was a major factor in the rise in inflation. High inflation has been another factor in inflation. Then in 2012. Similarly, inflation of nearly 20 percent occurred. The inflation follows the departure of former Prime Minister Meles Zenawi. Eight years later, in 2013. Inflation is over 20 percent.

The current inflation is alarming and different from what it has been so far. Inflation is up to 5 percent economically recommended and healthy. If inflation is more than 10 percent, it is stressful, and 20 percent to 50 percent is extremely dangerous. The current crisis in our country is more than 20 percent, so we need to be careful. There are accumulated and historical reasons for this inflation. In today’s article I will try to address these reasons.