Inflation fell sharply to 23.3 percent in April 2024, down from a peak of 37.3 percent in May 2022.
According to figures released by the Ethiopian Statistics Service, the overall year-on-year inflation rate declined by 10 percentage points from 33.5 percent in April 2023.Â
Food inflation dipped slightly to 27 percent but non-food inflation plunged to 18 percent, less than half the rate of 36.1 percent in the same month last year.
This marks a significant slowdown in price rises across the economy. The National Bank of Ethiopia (NBE) attributed the decrease primarily to a slowdown in money supply growth over the past 12 months in line with its monetary policy measures.
The April 2024 inflation rate of 23.3 percent represents the lowest level in close to three years. Meanwhile, non-food inflation fell below the key 20 percent mark for the first time in three years indicating a tightening of demand-pull inflationary pressures.
Looking ahead, the central bank forecasts that inflation will continue moderating through the remainder of the current fiscal year. It expects the annual inflation rate for June 2024 to be close to the target of 20 percent that was announced around a year ago.