Addis Abeba — Ethiopia's annual inflation rate accelerated to 15.3 percent in July 2026, up from 13.9 percent in June and 13.7 percent a year earlier, as food and non-food prices both recorded renewed increases, according to the latest bulletin from the Ethiopian Statistical Service (ESS).
Discover moreDemographicsMedia consulting servicesPolitical commentary forum The July reading marked a sharp reversal from the easing inflation trend observed through much of the previous fiscal year. ESS latest data show that annual inflation had fallen to 9.7 percent in December 2025 before beginning to rise again, reaching 13.4 percent in May, 13.9 percent in June and 15.3 percent in July.
The acceleration was particularly pronounced in non-food prices. Non-food inflation reached 14.8 percent in July, compared with 12.2 percent in June. Food and non-alcoholic beverage inflation also increased, reaching 15.7 percent from 15.1 percent in June.
Discover moreNewspaper advertising spaceMagazinesPolitics "General inflation encompasses of two main divisions and twenty-one groups of expenditures," the ESS said, referring to the food and non-food components used to calculate the consumer price index.
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Among food items, sugar, jam, honey and chocolate recorded the steepest annual increase, with prices rising by 39.4 percent compared with July last year. Non-alcoholic beverages and coffee rose by 33 percent, while meat increased by 21.6 percent, oils and fats by 20.3 percent, fruit by 19.2 percent and milk, cheese and eggs by 18.9 percent. Vegetables rose by 13.6 percent, while bread and cereals increased by 8 percent.
The pressure was not limited to food. Among major non-food categories, education recorded a 25.3 percent annual increase, followed by miscellaneous goods and services at 19.3 percent. Alcoholic beverages and tobacco rose by 16 percent, transport by 15.6 percent, restaurants and hotels by 15.3 percent, furnishings and household equipment by 15.2 percent, and clothing and footwear by 15 percent. Housing, water, electricity, gas and other fuels increased by 13.3 percent.
Astronomy Discover moreLocal newspaper deliveryNewspapersNews subscription serviceGeographic ReferenceLocal NewsOnline news portalDigital news archiveAstronomypoliticalDaily news updates On a monthly basis, the pressure was even more pronounced. Consumer prices increased by 2.6 percent in July alone, compared with a 0.9 percent increase in June and 1.3 percent in July last year. ESS recorded a 2.2 percent monthly increase in food and non-alcoholic beverage prices and a 3 percent increase in non-food prices.
Addis Ababa real estate Housing, water, electricity, gas and other fuels recorded a 3.3 percent monthly increase, while transport, restaurants and hotels, and miscellaneous goods and services each rose by about 3 percent. Alcoholic beverages and tobacco increased by 3.1 percent, while furnishings and household equipment rose by 3 percent.
Food prices also continued to climb during the month. Meat rose by 4.4 percent from June, while non-alcoholic beverages and coffee increased by 3.2 percent. Oils and fats rose by 2.5 percent and other food products by 2.7 percent.
Despite the renewed monthly acceleration, ESS data indicate that inflation over the longer 12-month period remained below the latest annual rate. The 12-month moving average general inflation rate stood at 11.9 percent in July, up slightly from 11.7 percent in May and June.
The longer-term picture nevertheless shows that inflation has remained a persistent challenge for Ethiopian households. ESS reported that average annual general inflation stood at 16 percent in EFY2017, compared with 11.7 percent in EFY2016. The agency noted that the preceding four years had been particularly difficult for households because of elevated inflation, with rates exceeding 30 percent in many months of EFY2014 and EFY2015.
Daily news updates There has been some improvement in the annual averages. Average food inflation stood at 12 percent in EFY2018, down from 16.2 percent in EFY2017, while average non-food inflation fell to 11.3 percent from 15.8 percent. ESS attributed the relative easing in non-food inflation in EFY2017 and EFY2018 partly to tighter monetary policy aimed at reducing bank credit.
The July figures, however, point to renewed price pressures at a time when the government's broader economic reform program continues to reshape the economy. The ESS bulletin itself links longer-term non-food inflation pressures to factors including the depreciation of the birr against the U.S. dollar and higher international gasoline prices, noting that many non-food products are imported or rely on imported raw materials.
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For households, the latest figures mean that the cost of a broad basket of goods and services was substantially higher in July than a year earlier, with some essential categories rising far faster than the overall inflation rate. Sugar and related products rose by nearly two-fifths, while coffee and other non-alcoholic beverages increased by about one-third, underscoring the uneven impact of the renewed inflationary pressure.
Ethiopia recorded the largest increase in inflation among 10 major African economies during the first half of 2026.
The ESS notes that the agency now collects prices from 200 markets, up from the previous 120, after adding 80 markets to improve the representativeness of the national price survey.
