The annual inflation rate in Ethiopia soared to 17.9 percent in August 2019 from 15.5 percent in July. It is the highest inflation rate since September 2012, mainly attributable to lingering effects of drought and security problems amid an upsurge in ethnic violence across the country in recent months. Prices continued to climb for food (23 percent vs 20.1 percent in July), especially major cereal types such as teff, barely, sorghum and maize and also some vegetables used daily, including onions and garlic. Also, cost rose faster for non-food products (12 percent vs 10.3 percent). On a monthly basis, consumer prices inched up 2.32 percent, following a 1.27 percent increase in the previous month. Inflation Rate in Ethiopia averaged 16.07 percent from 2006 until 2019, reaching an all time high of 64.20 percent in July of 2008 and a record low of -4.10 percent in September of 2009.
Inflation Rate in Ethiopia is expected to be 19.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Ethiopia to stand at 14.40 in 12 months time. In the long-term, the Ethiopia Inflation Rate is projected to trend around 7.50 percent in 2020, according to our econometric models.