The Causes of Hiking Ethiopian Consumer Prices

A growing consumer price is creating instability in the macroeconomic environment and hinders consumption level of especially poor society. This paper then explored major causes such increasing prices using Ethiopian cases. Using data from National Bank Ethiopia 1982/1983 to 2019/2020, it condensed information monetary sector, external sector fiscal variables a small set estimate hiking ARDL model. The factors determining differ food non-food. most important are expectation factors. On other hand, main determinant non-food factor. author also found evidence effects on general prices. Therefore, contain rise prices, needs exercise conservative stances, which require minimizing deficit financing, reducing import tax rate domestic indirect rates as excise value added basic goods services. Moreover, sound government policies essential address inflation anticipations (providing for society about future inflation) change public opinion.