Ethiopia Monthly Market Watch January 2013
The Ethiopian Grain Trade Enterprise has procured 400,000mt of wheat grain from the international market for distribution at subsidized price to flour factories to maintain price of white br ead affordable to low income groups.
The country level year - on - year inflation has increased by 12.5% and 11.3% respectively for overall and food inflation rate. However, the month - to - month inflation rate has rose by 0.3% from its level of below zero in t he last quarter of 2012.
The import parity prices of cereal at Addis Ababa remained stable at elevated level against last month with an increase of 2% for maize and 3% for wheat. The import parity price of maize and wheat stood above the wholesale price a t Addis Ababa respectively by 57% and 43%.
The cheapest cereal, maize, has shown increases in the major supplying markets such as Nekempt, Jimma, Shashemene that has direct implication to price rise in the last destination markets. Furthrmore, u seasonably movement of maize from these surplus areas to historically deficit areas started earlier than normal time.
Terms of trade between daily wages to cereal stood above traditional daily ration of 3kg of sorghum in Amhara and barley in Tigray. In locations where public projects are on - going the wages rate increased; otherwise decreased as the demand for agricultural activities ceased and hence has direct implication on food security of labor dependent households.