Ethiopia’s Inflation Rate Rises to 15.1% in August

By Mintesinot Nigussie  |  September 10, 2026

Ethiopia’s annual inflation rate accelerated to 15.1 percent in August 2026, up from 13.6 percent a year earlier, as higher prices for food and non-food items continued to put pressure on consumers.

The latest figure, released by the Ethiopian Statistical Service on September 9, shows inflation rising by 1.5 percentage points from August 2025.

Food and non-alcoholic beverage prices increased 14.9 percent year-on-year in August, driven by higher prices for a range of key commodities. Vegetable prices rose 12.1 percent, while meat increased 22.6 percent, dairy products and eggs 18.7 percent, and fruits 19.1 percent.

Prices for oil and butter increased 18.8 percent, while sugar, honey and chocolate recorded the largest increase in the food category at 38.3 percent. Bread and injera prices rose 8.1 percent, while other food products increased 16.8 percent.

Non-food inflation was higher than food inflation in August, reaching 15.4 percent. Transport prices rose 15.6 percent, while alcoholic beverages and tobacco increased 16 percent.

Prices for education increased 25.3 percent, the highest rise among the non-food categories reported by the ESS. Health costs rose 12.8 percent, communication 8 percent, restaurants and hotels 15.3 percent, and other goods and services 19.3 percent.

The latest data also show a shift in the composition of inflation from the previous month. Food inflation eased from 15.7 percent in July to 14.9 percent in August, while non-food inflation increased from 14.8 percent to 15.4 percent.

Inflation had fallen to 7 percent in March before accelerating through the following months, with food inflation reaching 15.7 percent in July. The August figures indicate that price pressures remain elevated despite the moderation in food inflation.

The data come as Ethiopia continues to implement economic reforms aimed at stabilising the economy, improving foreign exchange availability and addressing structural constraints affecting domestic prices.

Source: FSX Business News