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Double-Digit Inflation Returns as Food and Fuel Costs Hit Ethiopia

Double-Digit Inflation Returns as Food and Fuel Costs Hit Ethiopia

Ethiopia’s inflation rate returned to double digits in April 2026, signalling renewed pressure on household spending as food prices, fuel costs and global supply disruptions began to test the country’s recent disinflation gains.

Headline inflation rose to 11.7 percent in April from 9.4 percent in March, reversing part of the easing trend recorded in recent months. Food inflation climbed to 13.5 percent, while non-food inflation rose to 9.1 percent.

The rebound comes after policymakers had pointed to falling inflation as one of the clearest gains from Ethiopia’s macroeconomic reform programme. Inflation had fallen into single digits from December 2025, helped by tighter monetary policy, fiscal restraint and improved supply conditions. But the latest figures show that price stability remains fragile, particularly as external shocks begin feeding into domestic costs.

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