Ethiopia’s annual inflation rate rose to 13.4 percent in May 2026, marking a sharp increase from 11.7 percent in April and signaling renewed pressure on household budgets after months of easing price growth.
According to the latest Consumer Price Index (CPI) data released by the Ethiopian Statistical Service (ESS), the increase was largely driven by rising food prices, which continued their upward trend for the third consecutive month. Headline inflation had previously fallen to 9.4 percent in March, raising hopes that the country was moving closer to single-digit inflation after years of elevated price pressures.
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The overall inflation rate recorded in May was 1.7 percentage points higher than the previous month, reflecting a broad-based rise in both food and non-food categories.
Food inflation reached 15.0 percent year-on-year, up from 13.5 percent in April. The ESS attributed the increase primarily to higher prices for essential consumer goods, including vegetables, meat, dairy products, eggs, fruits, edible oils, and sugar—items that constitute a significant share of household spending.
Among the fastest-rising categories, non-alcoholic beverages and coffee surged by 40.9 percent, while sugar, jam, honey, and chocolate increased by 36.9 percent. Meat prices climbed by 19.5 percent, milk, cheese, and eggs rose by 19.3 percent, oils and fats increased by 17.4 percent, and fruit prices were up by 17.1 percent compared to the same period last year.
Non-food inflation also accelerated, reaching 11.1 percent in May from 9.1 percent in April. Several categories recorded notable increases, including miscellaneous goods and services, which rose by 17.9 percent, alcoholic beverages and tobacco by 14.6 percent, transportation by 12.1 percent, restaurants and hotels by 10.5 percent, and communication services by 9.1 percent.
The latest figures represent a challenge for Ethiopia’s ongoing efforts to stabilize prices under its broader macroeconomic reform agenda. Inflation had declined significantly from the highs experienced during the years of conflict, global supply chain disruptions, and commodity price shocks. However, the recent rebound suggests that underlying price pressures, particularly in food markets, remain persistent.
The National Bank of Ethiopia has maintained a tight monetary policy stance aimed at containing inflation and anchoring expectations. Nevertheless, policymakers now face the difficult task of balancing price stability with efforts to support economic growth, investment, and private sector expansion.
For Ethiopian households, the rise in food prices carries particular significance. Food accounts for a large share of consumer spending, especially among low- and middle-income families. As a result, increases in staple goods often have a greater impact on living standards than headline inflation figures alone suggest.
The May inflation reading underscores the fragility of Ethiopia’s disinflation progress and may influence future monetary policy decisions if price pressures continue to build in the coming months.
