Ethiopia's annual inflation slowed to 14.9% in September from 15.1% in August, according to the Ethiopian Statistical Service on Thursday, October 15, though it remained above 13.2% a year earlier. Food prices rose 14.8% and non-food prices 15.1% over the year, with sugar, honey and chocolate up 39.8%, meat up 22.0%, and alcohol and tobacco up 18.2%. The National Bank of Ethiopia raised its policy rate by 1 point to 16% in July and expects inflation to stay in double digits. The birr, which has weakened steadily since its 2024 float, was about 161.8 per US dollar on October 15 and raises the cost of imported goods. The IMF, whose US$3.4 billion loan programme anchors the reforms, urges tight monetary policy, and its next review will judge whether prices are coming under control.
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