Inflation in Ethiopia slowed more than anticipated last month, falling to 19.9 percent and bringing price growth closer to the target range set by the central bank, according to data released Monday by the Ethiopian Statistical Service.
The figure marks a significant decline from the 29.3 percent inflation recorded in June 2023.
The deceleration brings inflation closer to the target set by the National Bank of Ethiopia (NBE) in its monetary policy strategy last year, according to the central bank.
"This decline is just in line with the inflation target set by NBE in its Strategy Plan a year ago and shows the progress of the monetary policy stance adopted during the past year and other supporting supply side measures that increased output," said NBE’s statement.
Core inflation, which strips out volatile food and fuel costs, plunged even more dramatically - halving to 15.3 percent from 31.4 percent in the same month a year ago.
Month-on-month inflation also stabilized in recent quarters at 0.9 percent in June. If sustained, the annualized rate would slow to around 11 percent- signaling waning inflationary pressures.
The Statistics Service data provides the clearest evidence yet that Ethiopia is making progress in curbing high inflation, a key challenge for its developing economy in past years. The figures may ease expectations of further monetary tightening by the NBE.