ADDIS ABABA – Ethiopia’s headline inflation climbed above 15% in July, data from Ethiopian Statistical Service (ESS) showed, as rising fuel prices contributed to pain for consumers. The
ADDIS ABABA – Ethiopia’s headline inflation climbed above 15% in July, data from Ethiopian Statistical Service (ESS) showed, as rising fuel prices contributed to pain for consumers.
The Consumer Price Index (CPI), a broad gauge of goods and services costs across the nation’s economy, rose 2.6% for the month, taking the annual inflation rate to 15.3%.
The report is in line with the National Bank of Ethiopia’s recent projection, saying it “will likely remain in the double-digits” before moderating by Dec 2026.
Headline inflation ran above the Bank’s single digit target in May after the Middle East conflict resulted in global fuel supply disruptions.
July’s CPI reading is the highest since January 2025 and above the 13.9% gain in June as rising fuel prices carry knock-on effects to the broader economy.
[Source ESS]
The CPI report shows that prices consumers pay for non-food items accelerated 3.0% for the month, and 14.8% from a year ago, equaling the previous highest annual Non-food inflation rate registered in September 2025.
Education services costs surged 25.3% from a year ago while transport posted a 15.6% increase after raising 3.0% in July, a potential indicator that high fuel prices were filtering through other areas.
Housing, water, electricity, gas and other fuels costs – which makes up the non-food CPI’s highest weighing component – rose 3.3% for the month and 13.3% from a year earlier.
Within the same CPI, prices for alcohol drinks and tobacco surged 16.0%, restaurant and hotel services rose 15.3%, furnishings and routine house maintenance increased 15.2%, clothing and footwear spiked 15.0% on an annual basis. Health and communication rose 12.8% and 8% increases, respectively.
Much of the inflationary pressure came from rising cost of foods. The ESS report puts the annual food inflation rate at 15.7% – the highest since January 2025 – with monthly rate hitting 2.3%.
A 39.4% surge in the sugar, jam and honey prices was the biggest contributor to food inflation on an annual basis followed by non-alcoholic beverages and coffee, which cost 33% more than a year ago and rose 3.3% for the month.
Meat prices posted the biggest monthly gain, with 4.4% increase, and were also 21.6% up from a year ago.
Bread and cereals, the CPI’s highest weighing component, rose 1.4% for the month and 8.0% year-on-year, while vegetables prices saw 2.0% monthly and 13.6% annual gains.
Price increases in Milk, Cheese and Eggs (18.9%), Oils and Fats (20.3%), Fruit (19.2%) also contributed to the rise in the food inflation rate in July, per the latest ESS report.
