The annual inflation rate in Ethiopia eased further to 10.9% in November 2025, the lowest since February 2019, from 11.7% in the prior month, despite persistent currency pressures. This marked the sixth consecutive month of slowing inflation, mainly due to non-food products (11.4% vs 14.2%). On the other hand, food inflation accelerated (10.6% vs 10.2%), on higher prices of vegetables, meat, sugar and sweets, dairy products, fruits, oils and fats, and other food items. On a monthly basis, consumer prices decreased by 1.4% in November, after a 2.3% rise in the previous month. Meanwhile, the local currency remains under pressure due to persistent foreign exchange shortages. The shift to a market-based FX mechanism in July 2024 aligned official rates with parallel-market levels, triggering sharp swings in the birr.
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