 The Central Statistics Agency reported that the April year on year general inflation stood at 8.7%, food inflation at 12.3% and the non- food inflation at 4.7%. The higher food inflation rate is driven by cereal price rise in most markets. On the other hand prices of vegetables, potato, tubers, pulses and coffee declined. As figure 1 shows, food price indices have been on the rise since January this year. 
Similarly, food inflation rate, based on changes in Consumer Price Index increased steadily from 5% in January 2017 to 12.3% in May 2017. 

In May, average wholesale maize prices for selected EGTE monitored markets increased by 33%, from the long term average, by 34% from last year and by 10% from last month. Increase in maize prices is seasonal, however the high level of rise from the normal and from last year raises a concern and maize production and supply needs to be monitored closely. Figure 3 shows Wholesale wheat prices are relatively stable with an average increase of 8% from normal (long term), 2% from last year and 9% from last month. However, Addis Ababa and Hosanna markets recorded higher price increase from last month, 13% in Addis Ababa and 16% in Hosanna markets. 

In contrast to maize, wholesale price of white sorghum declined by 23% from the long term average in Gonder & Humera, by 11% in Addis Ababa and 10% in Mekelle markets. Sorghum prices also declined compared to last year by 37% in Mekelle, 22% in Gonder and 21% in Humera markets. Prices increased slightly compared to last month. 
 Wholesale prices of teff showed an increase of 2% from long term average, 13% from last year and similar to last month in most markets. 

The highest price rise from the long term average was recorded in Jinka, Meti, Dollo Ado, Sodo, Turmi, Yabelo, Gambella, Shashemene, Bedessa, Babile, Haromaya, Korem and Assosa ranging from 21% to 58%. Comparison with last year also show high price increases in Meti, Jinka, Turmi, Sodo, Haromaya, Bedessa, Shashemene and Gambella markets ranging from 25% to 69%. 
Prices remained stabled in relation to the previous month in most WFP monitored markets. 

Summary by region shows that the highest increase from the long term average in retail maize prices was recorded in SNNPR (47%) Somali (44%), Benishangul (21%), Gambella (19%), Oromia (14%), Harari (11%), Amhara and Diredawa 10%. Compared to last year, prices increased in SNNPR (42%), Assosa (20%), and Gambella (19%) Harari (18%), Somali and Amhara (15%), and Diredawa (14%). 

Month to month comparison shows mostly stable wheat prices except in Wolenchiti, Robe and Gambella where price increased by 22% in Wolenchiti and 11% in Robe and Gambella. On the other hand a decline of 24% in Deder and 11% in Bedessa was reported. 

Compared to the long term average, retail prices of white sorghum increased by 10% taking the average for all regions, but prices increased significantly in SNNPR (45%), Gambella (36%) and Somali (17%) regions. Compared to last year, sorghum prices increased SNNPR (45%) Gambella (36%) and Somali (11%). Prices also increased from last month in SNNPR (23%), Gambella (15%) and Amhara (12%). 

Shoat to cereal: The average shoat to maize terms of trade (ToT) in Diredawa, Jijiga and Yabelo markets improved in May by 13-28% compared to the previous month. Livestock to maize ToT was stable in Awash and Gode markets as compared to last month. However, livestock to maize ToT declined in Negelle & Asayita markets by 9% and 7% from last month. In Negelle and Yabelo markets an average goat can buy 91 kg and 64 kg of maize respectively. 

Wage to cereal: the daily wage rate for unskilled labor remained stable while maize price has been increasing in monitored markets in Tigray. As a result, maize to wage ToT declined by 2% - 13% in Korem, Abi Adi, Adwa, Adigrat and Hawzen Similarly the ToT for wage to sorghum showed a decline of 2% – 13% in Wukro, Abi Adi and Hawzen. Daily unskilled wage rates to sorghum ToT in Tigray ranged from 8.30 kg to 17.86 KGs while wage rate to maize ranged from 9.06 to 20 KGs. 


