By Muluken Yewondwossen

The monthly inflation rate in May declined by the same amount as in April, according to a report of the Central Statistical Agency (CSA).
According to the 12 months moving average general and food inflation showed a decline starting in March 2008 and continued the trend to April 2009, the report said.
The general moving average inflation rate was 46.1 in February 2009 and consequently declined to 45.2 per cent in March 2009 and 44.3 in April 2009.
In a similar way, the moving food average inflation rate declined from 61.1 per cent in February 2009 to 59.2 per cent in March 2009 and 57.2 per cent in April 2009. Likewise, the country level non-food inflation rate stood at 24.6 per cent in April 2009.
The 57.2 per cent country level food inflation rate in April 2009 is 30.6 percentage points higher than that of 26.6 per cent inflation rate at April 2008.
This higher increase in the food inflation rate was due to the increase in price indices of components like cereals, pulses, meat, milk, eggs, vegetable and fruits.
However, slight increases in prices of the food and non-food components of the index have been observed, starting in February 2009. Especially, the prices of wheat, rice, fruits and vegetables and sugar are on the rise. Among the non-food components, the prices of construction materials, clothing and footwear, furniture and furnishing and personal care items are increasing.
The country level overall inflation rate (annual change based on 12 months moving average) stood at 44.3 per cent in April 2009. This rate is 24.4 percentage points higher than the corresponding annual average rate of 19.9 per cent in April 2008.
As the figures indicate, the increase in prices in recent months is much lower than last year, stated the CSA.

(Capital)

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