The working paper on Rising Food Prices and Household Welfare in Ethiopia:Evidence from Micro Data analyzes welfare implications of rising commodity prices in Ethiopia based on household budget surveys. Our findings suggest that a rise in relative prices of such necessities as cereals would lead to a large deterioration in the welfare of households in urban areas.

In rural areas generally land-rich households tend to benefit significantly from the recent surge in food prices, while the land-poor and typical farm households tend to experience negative growth.Thus,price shifts in favour of agriculture could aggravate poverty conditions in rural areas.