The Clap
Annual urban inflation rose from 10.5% in March 2022, to 13.1% in April 2022.
How the inflation rate is determined
The Consumer Price Index measures the annual rate of change in the prices of groups of goods and services.
Inflation Drivers
The rise is attributed to the increase in the prices of the food and beverage division by 8.1% on monthly basis, especially vegetables prices that rose 32% from March 2022.
This can be explained by the increase in the volume of demand that the month of Ramadan witnessed.
Backstory
This rate is higher than the CBE inflation target of 5%-9%. The CBE raised interest rates last March by 1%, & is highly expected to raise rates again during its scheduled meeting on May 19, 2022.
