Inflation Is Back: Ethiopia Jumps to 13.4 Percent and Food Prices Are to Blame

As reported by Birr Metrics

Summary

• Ethiopia's annual inflation rate rose to 13.4 percent in May 2026, climbing from 11.7 percent in April and 9.4 percent in March. Food prices rose for a third month in a row and drove most of the increase. The jump reverses earlier disinflation progress, after headline inflation had fallen to 9.7 percent in February 2026.
• The National Bank of Ethiopia has kept a restrictive monetary policy stance, including a high policy rate and limits on bank credit growth, to contain inflation and anchor expectations. The May reading shows that the decline in prices remains fragile, especially for food, even as the government continues its broader macroeconomic reform program. Rising fuel costs linked to the war in the Middle East have added to price pressure.
• For BirrValue users, higher inflation reduces the purchasing power of the birr at home and can put pressure on the exchange rate. Remittance recipients may find their birr buys less than before. Watch for the next monetary policy update and compare rates across banks on [BirrValue](/banks) to get the most birr for your dollars.