The annual inflation rate in Ethiopia rose to 11.1% in March 2019 from 10.9% in the prior month, hitting its highest level since October. Prices increased faster for food (11.4% vs 10.7% in February), including the cost of most of the cereals types (especially teff, rice and wheat) and vegetables and fruits. The country faces severe food shortages amid the delayed start of long rains season coupled with lower crop production of the last season's (October) short rains. Meanwhile, cost slowed a bit for non-food products (10.8% vs 11.2%), namely clothing & footwear (19.7% vs 23%); restaurants & hotels (13.2% vs 15.7%); alcoholic beverages & tobacco (1.1% vs 0.6%) and furnishings (13.8% vs 15.8%). In contrast, inflation picked up for housing, water, electricity, gas and other fuels such as charcoal and firewood (8.9% vs 8.1%). On a monthly basis, consumer prices went up 2.2 percent compared to a 1.4 percent rise in the previous month. Inflation Rate in Ethiopia averaged 16.08 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 10.00 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 8.30 in 12 months time. In the long-term, the Ethiopia Inflation Rate is projected to trend around 10.00 percent in 2020, according to our econometric models.