Ethiopia’s Inflation Rate Drops, But Conflicting Reports Emerge

According to the National Bank of Ethiopia (NBE), Ethiopia’s inflation rate has seen a significant decline, . The NBE reports that the annual inflation rate fell from 29.4% in January 2024 to 15.5% in January 2025, marking a notable decrease of 13.9 percentage points. This improvement is attributed to a drop in food inflation by 16.6 percentage points and a reduction in non-food inflation by 10.2 percentage points. The central bank credits these changes to the transition to a market-based exchange rate and the implementation of tighter monetary controls, which are helping to stabilize price pressures.

However, conflicting data has emerged from Trading Economics, which places Ethiopia’s annual inflation rate at 17% for December 2024, slightly higher than the NBE’s January figure. While both sources acknowledge a decline in inflation, the discrepancies highlight variations in data collection periods and methodologies.

As the situation evolves, these differences in inflation reporting underscore the complexities of economic data in Ethiopia.