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

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...