Inflation in Ethiopia has dropped in December to 12.9 percent, its lowest rate of 2012, according to Reuters. Inflation in Ethiopia had reached 36.3 percent last February but has steadily been declining since.

Also food price inflation fell to 11.8 percent in December and non-food inflation rate dropped to 14.6 percent in December. IMF singled out inflation as the biggest challenge facing policymakers in Ethiopia.

Ethiopia has registered one of the world's fastest economic growth rates for the last few years; and its economy is expected to maintain a growth rate of 11 percent in 2012/2013, the seventh consecutive fiscal year of growth.