Food Prices Push Ethiopia’s Inflation Back Up as Costs Hit 15.1%

Food Prices Push Ethiopia’s Inflation Back Up as Costs Hit 15.1%

July 22, 2026
By Mintesinot Nigussie

Rising food costs drove Ethiopia's inflation higher in June, with food inflation climbing to 15.1 percent and lifting annual consumer inflation to 13.9 percent, according to data released by the Ethiopian Statistics Service (ESS). The food inflation rate increased from 15.0 percent in May and 11.7 percent a year earlier, extending a three-month upward trend that has made food the main source of price pressure in the economy. Overall inflation rose from 13.4 percent in May, although it was unchanged from June last year.

The statistics agency attributed the latest increase in food prices to higher costs for vegetables, fruits, bread and cereals, meat, fish and seafood, milk, cheese and eggs, as well as coffee, tea and cocoa. Food prices have gathered pace since April, when annual food inflation stood at 13.5 percent, suggesting that the easing in consumer price growth seen earlier this year has become increasingly concentrated outside the food basket.

Price pressures also broadened beyond food. Annual non-food inflation rose to 12.2 percent in June from 11.1 percent a month earlier, continuing a steady increase from 7.0 percent in March. Despite the recent acceleration, non-food inflation remained well below the 17.4 percent recorded in June 2025. On a monthly basis, consumer prices increased 1.3 percent in June, slowing from the 1.7 percent rise recorded in May.

Besides food, the ESS reported higher prices for clothing and footwear, household furnishings, restaurants and hotels, and alcoholic beverages and tobacco. June's figures suggest food prices remain the principal challenge for policymakers, with persistent increases in essential commodities offsetting much of the progress made in slowing overall inflation over recent months.

The latest data highlights the ongoing pressure on household budgets as food costs continue to rise, while non-food inflation shows signs of broadening. Authorities are expected to monitor the situation closely as they work to manage price stability amid various economic challenges.

Source: FSX Business News