Food Inflation Eases in Ethiopia as Non-Food Prices Rise Faster

November 5, 2026 | By Semahegn Nigatu

Ethiopia’s annual inflation rate fell to 14.6 percent in October 2026 from 14.9 percent in September, as food price increases slowed while non-food inflation accelerated, according to the Ethiopian Statistical Service (ESS).

The October reading marked the third consecutive monthly decline in headline inflation, following rates of 15.1 percent in August and 14.9 percent in September. However, the latest figure remained above the 11.7 percent recorded in October 2025.

Inflation in food and non-alcoholic beverages eased to 14.1 percent in October from 14.8 percent a month earlier. The moderation came despite substantial increases in several food categories. Prices of sugar, honey and chocolate rose by 36.2 percent year on year, while meat prices increased by 23.8 percent. Milk, dairy products and eggs recorded a 20.1 percent rise.

Non-food inflation moved in the opposite direction, increasing to 15.4 percent from 15.1 percent in September. Transport prices rose by 17.1 percent, while alcoholic beverages and tobacco recorded an increase of 18.92 percent. Prices of other goods and services increased by 19.1 percent.

Other categories recorded more moderate increases. Communication prices rose by 9.1 percent, while health costs increased by 10.5 percent. Education prices were up 15.5 percent.

The figures show that the decline in headline inflation was driven by slower increases in food prices, while non-food categories continued to exert pressure on the consumer price index.

The annual inflation rate measures the change in prices compared with the same month a year earlier. Its decline therefore indicates that prices are rising at a slower annual pace, not that the overall cost of goods and services has fallen.

Source: FSX Business News