Ethiopia Inflation Rate Edges Lower to 9.7%

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The annual inflation rate in Ethiopia ticked down to 9.7% in February 2026 from 9.8% in the prior month. Price growth eased for non-food products (8.1% vs 9% in January) but accelerated for food (10.8% vs 10.4%). On a monthly basis, consumer prices rose by 0.4% in February, following a 0.7% increase in the prior month. Headline inflation fell into single digits for the first time in many years in December 2025. Prime Minister Abiy Ahmed recently said that targeted subsidies, income adjustments, supply-chain reforms, and improvements in essential public services such as electricity and water helped achieve this milestone.

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