Ethiopia’s Inflation Rises to 9.8% in January

Ethiopia’s overall inflation rate rose to 9.8 % in January 2026, slightly higher than the 9.7 % recorded in December 2025, according to the latest official data. Despite the monthly increase, inflation showed a sharp year on year decline from the 15.5 % registered in January 2025, highlighting a broader easing trend in annual price pressures.

The increase was largely driven by a 10.4 % rise in food and nonalcoholic beverage prices, as higher costs for vegetables, meat, dairy products, eggs, fruits, cooking oil, and sugar continued to strain household budgets. Food inflation remained the dominant contributor to the headline figure, reflecting persistent supply-side and seasonal pressures in key consumer staples.

Non-food inflation stood at 9.0%, with notable increases across several categories. Transport prices surged 17.1%, while the cost of other goods and services climbed 19.4%. Prices at restaurants and hotels rose 12.5%, household furnishings increased 11.8%, and alcoholic beverages, tobacco, and communication services each recorded inflation of 10 percent, adding to overall cost of living pressures, particularly in urban areas.