Ethiopia's annual inflation rate jumped to 13.9 percent in June 2026, the highest it's been in a year, according to data released Tuesday by the Ethiopian Statistical Service. The figure marks an acceleration from 13.4 percent in May.
The spike dashes hopes that price pressures were easing. Recent monetary policy moves had promised some relief, but the gains proved temporary.
Food prices drove most of the increase, climbing to 15.1 percent annually in June from 15 percent the month before. Non-food inflation also picked up speed, reaching 12.2 percent in June compared with 11.1 percent in May.
Month-on-month, consumer prices rose 1.3 percent in June, a slight slowdown from May's 1.7 percent. When compared to June 2025, the annual rate remained flat at 13.9 percent.
Vegetables, fruit, bread and cereals bore much of the weight in food inflation, the statistical service noted. Prices for meat, fish and seafood also climbed, as did costs for dairy, eggs, coffee, tea and cocoa.
Beyond food, clothing and footwear pushed non-food prices higher. Restaurant meals, household furnishings, alcoholic drinks and tobacco also saw significant increases.
The National Bank of Ethiopia responded this month by raising its benchmark policy rate 100 basis points to 16 percent. The central bank also lifted its annual credit growth cap on commercial banks from 14 percent.
In a statement, the Monetary Policy Committee blamed fuel supply disruptions tied to Middle East conflict tensions for part of the acceleration. "Inflation had eased following macroeconomic reforms in July 2024, but began accelerating again from April," the committee said.
Officials added that the latest tightening aims to rein in inflation expectations and push prices back down over the coming months. The non-food inflation rate, though rising, remains well below June 2025's 17.4 percent level.
