Inflation Rate Stands at 14.4 pc, Tracking System Improved


Inflation Rate Stands at 14.4 pc, Tracking System Improved

The Ethiopian Statistical Service (ESS) has expanded its Consumer Price Index (CPI) coverage from 120 to 200 markets, marking the first major update in 25 years. The move comes in response to rapid urbanisation and the formation of new regional states, aiming to provide a more accurate reflection of national price trends. Inflation dropped to 14.4pc in May 2025 EFY, down from 22.8pc a year earlier. The decline was mainly driven by food inflation easing, with bread and cereals up just 1.3pc. However, non-food inflation remained elevated at 17.8pc, led by transport costs, which surged 41.4pc year-on-year. Housing, water, and electricity rose 18.8pc, while restaurant and hotel prices increased 18.3pc. Coffee and other nonalcoholic beverages saw the steepest annual rise at 47pc, underscoring the pressure on household budgets. Monthly inflation rose slightly by 0.2pc in May, though clothing and footwear jumped 2.8pc. Health costs fell by 2.6pc the only major category to register a drop. The 12-month moving average inflation rate fell to 16.5pc, down from 27.4pc in the same month last year. The ESS attributes ongoing non-food price pressures to import dependency and forex shortages. While the expanded CPI network aims to improve data quality, structural challenges such as currency weakness and external supply shocks persist.

[ssba-buttons]

Radar

Coffee Hub Illu Ababor Targets Bigger Share in Global Market

Illu Ababor Zone supplied more than 51,000 tons of coffee to the central market in the 2024/25 fiscal year, Deputy Administrator Mohammed Teha reported. The effort is part of the "Neqemte Initiative," designed to promote production, productivity, and quality in top foreign exchange earner. The zone spans over 700,000 hectares, including 300,000 hectares of newly planted and rehabilitated coffee and 400,000 hectares of wild varieties, cementing its role as a major coffee hub. Officials highlig...


Radar

From Loan to Tap, Ministry Secures Water Infrastructure Funds

The Ministry of Water & Energy has signed a cooperation framework with China Exim Bank, facilitated by contractor CGCOC, securing a 100 million dollars loan. State Minister for Drinking Water & Sanitation Ambassador Asfaw Dingamo (PhD) said the funding will finance water supply and sanitation infrastructure in five cities: Holeta in Oromia, Areka in the South, Inseno and Tora in Central Ethiopia, and Mizan Aman in the South...


Radar

Bureau Rolls Out QR-Enabled IDs for Inspectors

The Addis Abeba Revenues Bureau has equipped inspectors with QR (quick response) code-integrated ID cards to curb fraud and improve transparency. Launched in Mercato, the system lets merchants verify inspectors' identities via smartphone, deterring impersonation and extortion. Bureau head Biniyam Mikiru said the move strengthens technology-backed oversight and shields compliant taxpayers. Inspectors will also wear new uniforms to distinguish them from impostors. Merchants praised the reform, say...