Ethiopia Inflation Rate Hits Near 6-1/2-Year Low

The annual inflation rate in Ethiopia eased further to 10.9% in November 2025, the lowest since February 2019, from 11.7% in the prior month, despite persistent currency pressures. This marked the sixth consecutive month of slowing inflation, mainly due to non-food products (11.4% vs 14.2%). On the other hand, food inflation accelerated (10.6% vs 10.2%), on higher prices of vegetables, meat, sugar and sweets, dairy products, fruits, oils and fats, and other food items. On a monthly basis, consumer prices decreased by 1.4% in November, after a 2.3% rise in the previous month. Meanwhile, the local currency remains under pressure due to persistent foreign exchange shortages. The shift to a market-based FX mechanism in July 2024 aligned official rates with parallel-market levels, triggering sharp swings in the birr.

The annual inflation rate in Ethiopia fell to 10.7% in October 2025, the softest since March 2019, from 13.2% in the prior month. This marked the fifth consecutive month of slowing inflation, helped by both food (10.2% vs 12.1% in September) and non-food products (14.2% vs 14.8%). On a monthly basis, the CPI rose by 2.3% in October, after a 2% advance in the previous month.

The annual inflation rate in Ethiopia eased for the fourth month to 13.2% in September 2025, the softest since April 2019, compared to August's 13.6%. Price growth moderated for both food (12.1% vs 12.7% in August) and non-food products (14.8% vs 15.1%). On a monthly basis, the CPI surged by 2% in September, the steepest increase in six months, after a 1.1% increase in August.