Ethiopia Inflation Falls to 9.7%, Maintaining Single-Digit Trend

As reported by Horn Daily

Summary

• Ethiopia's year-on-year inflation rate fell to 9.7% in February 2026, down from 15% in February 2025. The decline continues a trend that began in late 2025, when inflation first dropped to single digits after the post-float spike.
• Food and non-alcoholic beverages rose 10.8% year-on-year and remain the main inflation driver. Price increases were recorded in vegetables, meat, dairy products, eggs, fruits, cooking oil, and sugar. Non-food inflation was lower but still elevated.
• The NBE's restrictive monetary policy stance, including maintaining the 15% National Bank Rate and credit growth caps below 24%, has contributed to the disinflation. The IMF had projected inflation would decline gradually as the effects of the July 2024 devaluation worked through the economy.
• For BirrValue users, lower inflation supports purchasing power for birr recipients. When inflation is falling, the real value of remittances sent in foreign currency and converted to birr holds better over time. Compare conversion rates on [BirrValue](/banks) and time your transfers when rates are favorable.