KEYIR NEWS:- Prime Minister Abiy Ahmed (PhD) announced that Ethiopia’s annual inflation rate has declined significantly, falling from 22 per cent in the 2016 fiscal year to 14.4 per cent in 2017. Inflation in food and related products has also seen a notable decrease, reaching 12 per cent.
Speaking on the economic performance of the year, the Prime Minister emphasised that this progress was achieved without borrowing from the National Bank, marking a major milestone in fiscal discipline. He attributed the reduction in inflation to wide-ranging reforms in fiscal and monetary policy, as well as improvements in foreign exchange management.
PM Abiy highlighted several targeted interventions that helped stabilize market prices. These include the allocation of substantial subsidies to low-income households, the launch of over 1,400 weekend markets across the country to directly link producers with consumers, and coordinated efforts to resolve supply chain bottlenecks.
“The most effective way to reduce inflation and the cost of living is to boost productivity,” the Prime Minister stated, reaffirming his administration’s commitment to increasing national production and productivity across sectors.
He further disclosed that a total of 350 billion birr in subsidies has been directed toward vulnerable populations to mitigate the impact of inflation. “Ensuring sustainable development requires that income levels rise in tandem with prices. By doing so, we can balance inflation with demand and protect the livelihoods of citizens,” Abiy concluded.