Price hike in merchandise natural to growing economy, says National Bank of Ethiopia
Economic Research and Monetary Policy Directorate Director with the NBE, Gebreyesus Gonte, told WIC that the increase in price of merchandise is expected of countries like Ethiopia that are registering economic growth.
The phenomenon is in particular witnessed in countries like China and India which have been registering huge economic gains, he said, adding that the lasting solution to the problem is therefore boosting productivity.
Citing other additional factors for inflation, the director said economic growth triggers demand.The discrepancy between demand and supply in turn causes price hike, he elaborated.
He further said the present price increase on agricultural produces was subjected to production and transportation costs.
The change in consumption of farmers and information usage as well as the imbalance in the marketing system have also contributed to price increase, it was pointed out.
