Ethiopian News | Ethiopia Inflation Rate 2023

He said that the short-term control of inflation is the first of three challenges that the National Bank of Ethiopia is focusing on.

Mamo Mehretu, the governor of the National Bank of Ethiopia, discussed the issues that the central bank is paying particular attention to and working on during his attendance and speech at the 20th international conference on Ethiopia’s economy that the Ethiopian Economic Association organized.

The National Bank’s governor claims that regulating inflation is one of the tasks the bank can accomplish in collaboration with organizations like the Ethiopian Economic Association. The National Bank is attempting to “stabilize inflation,” according to Ato Mamo, and “the monetary policy guidelines that will be put into effect moving forward will pay special attention to the reduction of inflation.”

The significant harm rising inflation does to economic and social concerns is well documented, according to the National Bank’s governor. In addition to having an impact on those with fixed incomes, it also hurts the most disadvantaged members of society and significantly distorts economic choices.

The objective in the next fiscal year, according to Ato Mamo, is to rectify this scenario. He noted that continuing to allow inflation to occur is exposing oneself to violence. He emphasized that because of the ongoing changes in the global scenario, policymakers in many nations face numerous difficulties, and price inflation in Ethiopia, like in other nations, has greatly grown as a result of the rise in the cost of gasoline, food, and fertilizers.

Ato Mamo, on the other hand, said that Ethiopia’s horrible internal war during a period of worldwide transition had prohibited the reform program from being implemented with focus, particularly in regards to the use of finances and control plan.

Aside from the one manner the National Bank works fast to stabilize inflation, he said that it would support the effort already underway to make the nation’s financial system stable, contemporary, and inclusive. He also said that by concentrating on how the supervisory institution functions, attempts are being made to transform it into a structure that collaborates, operates openly, and shares information and experiences.

In particular, on the first day of the two-day conference hosted by the Ethiopian Economics Association, economists presented their ideas in a talk titled “Ethiopian Economic Policy Concepts, Content, Benefits, and Implementation” and discussed the findings of studies conducted by various researchers.

At the conference on “Ethiopian Economic Policy Ideas,” former president of the Ethiopian Economic Association and current minister of education Berhanu Nega (Professor) said that the idea should be examined, especially by economists, not based on international experience but by highlighting that their society has adequately explored the issue.

On the other hand, the veteran professional organization has acknowledged on the stage those who have made important contributions over a long period to the teaching and research of economics education.

What is the Solution?

Construction materials and food and commodities connected to food both saw the biggest commodity price rise in Ethiopia. Even though the government sets the costs of products and resources at various periods, these regulations are rarely put into effect for more than a few weeks. For instance, with the recent rise in cement prices, it will be recalled that the Ministry of Trade and Regional Cooperation published a new pricing rate.

The ministry has determined that the cost of cement would range between 510 Birr and 683 Birr, starting at 44 cents. Cement is now being sold for up to 1050 birr, according to a trader who declined to be identified, who spoke to the BBC after the new pricing was announced.

After the government let international banks enter and do business in Ethiopia, we met with Zemedeneh Ngatu, head of the Fairfax Africa Fund. He thinks that providing the banks with dollars would help to solve the issue. The government could subsidize daily essentials as a short-term fix, according to financial adviser Ato Tilahun, “but tax collection is the main solution to inflation.” “For instance, I recently went to pay my car’s insurance money. They only assessed me 125 birr for the whole year. How does this affect them? They pose issues with how taxes are collected. “The tax collecting procedure has to be carefully monitored. Taxation is equivalent to taking from the wealthy and giving to the poor. The federal government has to prioritize this.

We previously talked with economist Gutu Teso (Dr.) on inflation, and he said that he does not think there is a quick fix since “the problem is very complex.” A London-based economist named Abdulmanan Mohammad recommended that “the government should reduce the money it borrows from the National Bank and stop projects whose importance is in question, even the projects that are considered important should be delayed until a solution is found for the time being.” If the government follows these steps, it should be able to see benefits within a year, according to Abdulmanan. “The movement of devaluing the purchasing power of the Ethiopian Birr about foreign currency should be stopped immediately as it will reduce the import of goods into the country,” said Abdul Manan.

World Bank; He suggests that nations with high inflation work to raise the standard of life for their citizens. “Let’s lead with knowledge, let’s buy knowledge,” said Fikadu (Dr.), in his address. “The biggest and last thing is the country.” Without a nation, it cannot go anyplace. We are the ones who know what to do and how to do it, so let’s make the nation our aim, let’s let the government perform work that helps the country, and let’s let us teach and show him what that job is. “We are the ones who can solve Ethiopia’s problem here,” said Fikadu (Dr.).

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