Ethiopia’s annual inflation rate rose to 13.4 percent in May 2026, marking a sharp increase from 11.7 percent in the previous month.
According to the latest Consumer Price Index (CPI) data released by the Ethiopian Statistical Service (ESS) on Monday, the increase was largely driven by rising food prices, which continued their upward trend for the third consecutive month.
Headline inflation had previously fallen to 9.4 percent in March, raising hopes that the country was moving closer to single-digit inflation after years of elevated price pressures.
Ethiopia’s annual inflation rate rose to 13.4 percent in May 2026, as food prices accelerated for a third consecutive month, complicating the government’s effort to sustain a recent decline in the cost of living.
Inflation remains slightly below the 14.4 percent registered in May 2025, but the direction of travel suggests price pressures are gaining momentum.
Month-on-month inflation stood at 1.7 percent in May, compared with 0.2 percent in the same month last year, indicating that recent price increases are not only a statistical base effect but are being felt in current market prices.
Food inflation, the most politically sensitive component of Ethiopia’s consumer basket, rose to 15 percent year on year.
The rise also was driven by sharp increases in several daily consumption items. Non-alcoholic beverages and coffee recorded one of the steepest increases, rising by 40.9 percent, while sugar, jam, honey and chocolate climbed by 36.9 percent. Meat rose by 19.5 percent, milk, cheese and eggs by 19.3 percent, oils and fats by 17.4 percent, and fruit by 17.1 percent.
Non-food items also added to the pressure. Transport prices rose by 17.1 percent, miscellaneous goods and services by 17.9 percent, alcoholic beverages and tobacco by 14.6 percent, and clothing and footwear by 13.2 percent.
Inflation had fallen sharply from the levels seen during the period of conflict, pandemic-related disruptions and global commodity shocks. But the May reading suggests that the decline remains fragile, particularly where food prices are concerned.
MG/abj/APA