Ethiopia Inflation Rate Falls to 2018-Lows

Ethiopia's annual inflation rate quickened to a six-month high of 11.7% in April 2026 from 9.4% in the prior month. Price growth accelerated further for food & non-alcoholic beverages (13.5% vs 11% in March), with broad-based increases across categories including vegetables (11.9%), meat (18.1%), sugar, jam, honey and chocolate (29.0%), milk, cheese and eggs (15.6%), oils and fats (18.0%), fruit (12.9%), other food products(16.0%), and bread and cereals (5.1%). Upward pressure also came from non-food products (9.1% vs 7%), notably clothing & footwear (13.3%), transportation (13%), alcoholic beverages & tobacco (10.5%) and housing & utilities (4.8%). On a monthly basis, the CPI advanced by 2.3%, the same pace as in the previous month.

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.