Ethiopia’s annual inflation rate declined to 14.6% in October 2026, down from 14.9% in September, as food price increases continued to ease. However, non-food inflation accelerated during the month, highlighting persistent cost pressures across the economy.

According to the latest report from the Ethiopian Statistics Service (ESS), the October inflation rate was 3.0 percentage points higher than the 11.6% recorded during the same month last year.

Food and non-alcoholic beverage inflation declined to 14.1% in October, compared with 14.8% in September. The slowdown follows a broader easing in food inflation from 15.1% in June.

Despite the moderation, several food categories continued to record significant price increases. Sugar, honey and chocolate led with 36.2%, followed by meat at 23.8%, oils and fats at 20.6%, milk, dairy products and eggs at 20.1%, and bread and injera at 10.7%.

In contrast, non-food inflation increased to 15.4% in October from 15.1% in September, reversing some of the improvement recorded earlier in the year.

The largest increase was recorded in other goods and services, where inflation rose to 19.1% from 17.6%. Alcoholic beverages and tobacco also increased to 18.9% from 18.2%, while transport inflation climbed to 17.1% from 16.0%.

Some sectors, however, recorded slower price increases. Education inflation declined to 15.5% from 17.8%, while restaurant and hotel inflation fell to 11.1% from 15.3%. Health inflation eased to 10.5% from 10.9%, and communication inflation declined to 9.1% from 9.6%.

The latest figures come as the National Bank of Ethiopia (NBE) maintains that inflation will remain in double digits over the coming six months, despite an expected gradual decline.

Following its eighth regular Monetary Policy Committee meeting on November 4, the central bank said inflationary pressures had remained elevated partly due to supply-side constraints, although the overall trend was downward. The bank reiterated its commitment to bringing inflation down to single digits.

The NBE has previously attributed the acceleration in non-food inflation to increases in electricity tariffs and the rising costs of fuel and firewood. Non-food inflation had risen from 12.2% in June to 15.1% in September.

While the decline in headline inflation signals some moderation in price pressures, the continued rise in non-food inflation suggests that the cost of living remains a significant challenge for Ethiopian households.