Ethiopia Inflation Rate Edges Lower to 9.7%

The annual inflation rate in Ethiopia eased for the second month to 9.4% in March 2026, down from 9.7% in the prior month. It was the lowest reading since November 2018, amid slowing prices of non-food products (7% vs 8.1% in February). On the other hand, prices rose faster for food (11% vs 10.8%), largely on account of bread & cereals (+3.5%); vegetables (+9.1%); non-alcoholic beverages (+37.7%) and meat (+14.7%). On a monthly basis, consumer prices advanced by 2.3%, the most in five months, after a 0.4% increase in February.

The annual inflation rate in Ethiopia ticked down to 9.7% in February 2026 from 9.8% in the prior month. Price growth eased for non-food products (8.1% vs 9% in January) but accelerated for food (10.8% vs 10.4%). On a monthly basis, consumer prices rose by 0.4% in February, following a 0.7% increase in the prior month. Headline inflation fell into single digits for the first time in many years in December 2025. Prime Minister Abiy Ahmed recently said that targeted subsidies, income adjustments, supply-chain reforms, and improvements in essential public services such as electricity and water helped achieve this milestone.

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.