Ethiopia Inflation Rate Accelerates to 1-1/2-Year High

The annual inflation rate quickened for the fourth month to 15.3% in July 2026, the highest since January 2025, up from June's 13.9%. Food inflation picked up to 15.7% in July from 15.1% a month earlier, marking its highest rate since January 2025. Major food categories recorded significant price increases, led by sugar, jam, honey and chocolate, meat, and oils and fats, which rose 39.4%, 21.6% and 20.3%, respectively. Fruit, dairy products and other food items also recorded increases of around 18% or more. Non-food inflation also accelerated, to 14.8% from 12.2%, mainly drive by prices of alcoholic beverages and tobacco (16.0%), restaurants and hotels (15.3%), furnishings and household equipment (15.2%), and clothing and footwear (15.0%). On a monthly basis, the CPI climbed by 2.6%, the most since March 2025, following a 1% rise in the month earlier.

The annual inflation rate in Ethiopia rose to 13.9% in June 2026, marking the highest level in a year and accelerating from 13.4% in the previous month. Food inflation accelerated to 15.1% from 15% in May, the highest level since January 2025, due to increases in most food commodities such as bread and cereals (7.3%) and vegetables (12.8%), while costs for meat products eased to 19.2%. Non-food inflation also accelerated, to 12.2% from 11.1%. Housing and utilities costs rose further (9.5% vs 6.8%), along with restaurants and hotels (12% vs 10.5%), furnishings (13% vs 12.7%), clothing and footwear (13.5% vs 13.2%) and education (17.3% vs 9.6%). In contrast, inflation eased for transports (14.3% vs 17.1%) and alcoholic beverges and tobacco (14.5% vs 14.6%). On a monthly basis, consumer prices rose 1% in June, easing from a 1.7% increase in the previous month.

The annual inflation rate in Ethiopia quickened further to 13.4% in May 2026, marking the highest level in nine months, from 11.7% in the prior month. Food inflation accelerated to 15%, the highest level in over a year, compared to 13.5% in April, due to increases in major food commodities such as vegetables (12.3%), meat (19.5%), sugar, jam, honey & chocolate (36.9%), milk, cheese and eggs increased by (19.3%), oils and fats (17.4%) and fruit (17.1%). Non-food inflation also increased, accelerating to 11.1% from 9.1% as transportation costs surged by 17.1% from 13% and housing and utilities prices increased by 6.8% from 4.8%. Additional upward pressure stemmed from alcoholic beverages and tobacco (14.6%), furnishings (12.7%), health (11.2%), communication (9.1%), education (9.6%) and restaurants and hotels (10.5%). On a monthly basis, consumer prices increased 1.7%, easing from 2.3% in the previous month.