FX.co ★ Ethiopia Inflation Eases to 4-Month Low

In July 2025, Ethiopia experienced a slight decrease in its annual inflation rate, which settled at 13.7%, the lowest observed in the past four months, compared to 13.9% in June. The deceleration in price growth is notable in several sectors, including housing and utilities, which saw a decline from 18.4% to 14.3%, as well as restaurants and hotels, which went from 17.2% to 16.7%, and alcoholic beverages and tobacco, decreasing from 13.9% to 10.7%. Conversely, food inflation showed an uptick, rising to 12.1% from 11.7%, primarily driven by increased prices in vegetables (18% compared to 14.9% previously), other food items (19.4% up from 18.8%), non-alcoholic beverages (52.3% up from 47.4%), and meat (increasing slightly from 12% to 12.1%). Additionally, the prices for clothing and footwear rose at a quicker rate, climbing from 13.8% to 16.1%. On a month-to-month basis, consumer prices increased by 1.7% in July, which is a noticeable jump compared to the 0.5% rise recorded in June.