Ethiopia’s inflation drops, daily costs still rising

Ethiopia’s official inflation rate fell sharply over the past year as year-on-year inflation came down to 10.9% in November 2025, reducing from 16.9% in November 2024, as reported by APA News, via the Ethiopian Statistical Service (ESS), on December 18th. 

The National Bank of Ethiopia has said bringing inflation back to single digits remains a medium-term goal. The central bank says it is relying on tighter monetary policy and broader economic reforms to keep prices under control.

The ESS revealed that this marks one of the lowest inflation readings Ethiopia has seen in recent years, following a long period of price pressure. However, Ethiopian citizens feel the cost of daily life is still rising fast. 

On a month-to-month basis, consumer prices fell by 1.4% in November. This was a huge drop compared to the 0.8% decline recorded in the same period of the previous financial year, indicating some short-term relief in prices.

Food and non-alcoholic drinks, which contribute the biggest share to household expenses, increased by 10.6% compared to 2024. The surge was driven mainly by higher prices for cooking oil, meat, dairy products, fruit and vegetables. Interestingly, prices of bread and cereals, the largest items in the food basket, fell by 3% over the year, helping to slow overall food inflation. 

Prices of non-food items rose at a slightly faster pace, with non-food inflation standing at 11.4%. The increase was slower in the later part of 2025, supported by gradual price increases for furniture, restaurant services and housing-related costs.

For the year so far, average inflation in 2025 stands at 13.8%, food prices have averaged 12.8%, while non-food items have increased by 15.4%. Official data reveal a steady slowdown through the year, with headline inflation falling from 15.5% in January to 10.9% in November. 

Food inflation followed a similar path, easing from 15.6% at the start of the year to 10.6%. Non-food inflation also calmed down, dropping from 15 % to 11.4 % over the same period.

Despite these figures, many Ethiopians say their day-to-day experience tells a different story. Citizens in both cities and rural areas report sharp increases in the prices of basic goods, whether locally made or imported. 

A visit to local markets reveals that daily necessities are now more expensive than they were a year ago, raising questions about how accurately official inflation numbers reflect the pressure felt by ordinary people in the country.

APA News, Maghrebi.org