Inflation Ethiopia 2021
Average inflation: 26.5%
Current Inflation
Inflation is very high at 26.5%, far above the ECB target.
Peak and Trough
The highest inflation was in December at 35.1%. The lowest inflation was in January at 19.3%.
- Highest month
- December: 35.1%
- Lowest month
- January: 19.3%
- Difference
- 15.8 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food with an average of 31.3%. The lowest price increase was in Energy with an average of 15.8%.
- Highest increase
- Food: 31.3%
- Lowest increase
- Energy: 15.8%
Historical Context
Current inflation is 9.0% higher than the 5-year average of 17.5%. This approaches the highest level since records began (26.5% in 2021).
- 5-year average
- 17.5%
- 10-year average
- 13.5%
- All-time high (2021)
- 26.5%
- All-time low (2016)
- 7.3%
Trend
Inflation shows an upward trend. Compared to 2020, inflation has risen by +6.1 percentage point.
- Change vs. previous year
- +6.1 percentage points
- Largest monthly swing
- December: +16.9 percentage points
ECB Target
Inflation is 24.5% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for €100 this year will cost approximately €126.50 next year at this inflation rate.
Multi-year trend
Monthly figures 2021
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2020 |
|---|---|---|
| January | 19.3% | +0.6 |
| February | 20.6% | -1.1 |
| March | 20.8% | -1.7 |
| April | 19.3% | -3.6 |
| May | 19.9% | +0.1 |
| June | 24.6% | +3.0 |
| July | 26.4% | +4.0 |
| August | 30.4% | +10.4 |
| September | 34.8% | +16.1 |
| October | 34.3% | +15.0 |
| November | 33.0% | +14.0 |
| December | 35.1% | +16.9 |
| Average | 26.5% |
Data source
Data from WorldBank. Last updated: 06/01/2026.