Ethiopia's Annual Inflation Rate Drops for Third Consecutive Month

Ethiopia's annual headline inflation declined to 14.6 percent in October 2026, down from 14.9 percent in September, according to the Ethiopian Statistical Service. This marks the third consecutive monthly decline, driven largely by a slowdown in food price increases, which fell to 14.1 percent. Conversely, non-food inflation rose to 15.4 percent, with transport, education, and other services experiencing faster price growth than food commodities.

Specific items, including sugar, honey, and chocolate, saw sharp annual price increases of 36.2 percent. While headline inflation is trending downward from July's peak of 15.3 percent, it remains higher than the 11.6 percent recorded a year ago. These figures were released shortly after the National Bank of Ethiopia maintained its benchmark policy interest rate at 16 percent to combat persistent price pressures. Despite the slowing annual rate, consumers continue to face significant price hikes across various sectors.