In recent years the cost of living in Ethiopia has reached unbearable levels, while the Zenawi government considers a wage increase as “a new and bad culture.”

The following chart shows the cumulative change in average consumer prices since TPLF took power in Addis Ababa in 1991. The data for the year-over-year inflation rates has been acquired from the International Monetary Fund (IMF) through Index Mundi, a site containing detailed country statistics, charts, and maps compiled from multiple sources.

As the data shows, average consumer prices in Ethiopia have increased by more than 500% since 1991. For instance, a quintal (100Kg) of Teff, the local staple grain, selling at an average price of 100-Birr in 1990 (pre-TPLF period) is being sold at an average price of 580-Birr in 2010.

In other words, the purchasing power of 1-Birr in 1990 has dropped to almost 0.17-Birr (or 16.67 cents) in 2010 (that is an 85% drop in the purchasing power of the BIRR over the last 19 years.) Purchasing power of a unit of money is calculated as follows:
1 / ( 1 + inflation rate ).

Ethiopia’s Cumulative Year-Over-Year Increase in Consumer Prices from 1991-2010 (IMF Data)

Note: the $-sign designation on the y-axis is not meant for US-Dollar, but Ethiopian Birr.

In order to cope with these skyrocketing consumer prices, workers in Ethiopia (majority of them employed by the state/government) would have gotten enough raises in wages and salaries. Alas! The wages and salaries have barely increased over the last 19 years to meet the cost of living. This is mainly due to the anti-wage-increase policy of the Zenawi government, which considers a wage increase as “a new and bad culture.”

Regarding the anti-wage-increase stance of the Zenawi government, it is enough to watch the following video, which was taped at the opening session of the 2009/2010 parliament. Mr. Legesse Biratu of Kinijit proposed that the government of Mr. Meles Zenawi consider wage/salary increases in order for workers to cope with rising cost of living. Prime Minister Zenawi responded to Mr. Biratu’s proposal, “wage increase is a new and bad culture,” and refused to incorporate the proposal into his government’s plan for 2009/2010.

It remains to be seen if the electorate will cast its vote at next week’s general elections in Ethiopia mindful of the cost of living that has reached unbearable stages in recent years; over the same years, the Zenawi government has claimed double-digit GDP growth, a claim fiercely refuted by the opposition at the last shengo (parliament) session.