FX.co ★ Ethiopia Inflation Rate Continues to Fall

In November 2025, Ethiopia's annual inflation rate declined further to 10.9%, the lowest it has been since February 2019, down from 11.7% the previous month. This marks the sixth consecutive month of decelerating inflation, primarily due to a decrease in non-food product prices, which fell to 11.4% from 14.2%. However, food inflation saw a slight increase, rising to 10.6% from 10.2%, driven by higher costs for vegetables, meat, sugar and sweets, dairy products, fruits, oils, and fats. On a month-to-month basis, consumer prices fell by 1.4% in November, following a 2.3% increase in October. Concurrently, the country continues to face foreign exchange shortages that exert pressure on its local currency. In addition, the transition to a market-based foreign exchange system in July 2024 aligned rates more closely with parallel market values, leading to significant fluctuations in the Ethiopian birr.