Roundup of Major Economic News from Africa’s Largest Economies for the Week-Ending 19 March 2023: Ethiopia

ETHIOPIA

Inflation Rises in February 2023 as Food Inflation Falls

The figure below shows that the inflation rate in Ethiopia slowed from 33.9% to 32.0% Y/Y in
February 2023.  This was despite the rise in food inflation from 32.9% to 33.6%.  Prices in Ethiopia continue to be adversely impacted by an ongoing drought in the south-east of the country and the conflict in Tigray, along with global events.  Going forward, inflation is likely to remain high.

Consumer Inflation and Food Inflation in Ethiopia from March 2022 – February 2023 (Y/Y %)

Data Source: Central Statistical Agency of Ethiopia

GHANA

Ghana’s Inflation Rate Remains Above 50% for the Fourth Month in a Row

Consumer Inflation and Food Inflation for Ghana from March 2022 – February 2023 (Y/Y %)

The figure above shows that Ghanaian inflation exceeded 50% for the fourth consecutive month in February 2023, despite slowing slightly, from 53.6% to 52.8% Y/Y.  This was as food inflation slowed below 60% to 59.1% and transport inflation rose from 68.8% to 70.3%.  Stability in the cedi and falling global oil prices were mainly responsible for the slower rate of inflation.  However, looking ahead, while inflation should continue slowing, it is likely to remain above 20% for many more months.

Data Source: Ghana Statistical Services