Ethiopia: cost of living

How fast are food prices rising in Ethiopia?

Food and non-alcoholic beverage prices in Ethiopia were 14.9% higher in August 2026 than a year earlier, according to the Ethiopian Statistical Service monthly CPI release. Bread and cereals rose 8.1%, vegetables 12.1%, meat 22.6%, milk, cheese and eggs 18.7%, oils and fats 18.8% and sugar, jam, honey and chocolate 38.3%.

Food has the largest weight in Ethiopia's consumer price index, so it drives the headline rate, which was 15.1%. Food inflation had fallen to 9.8% in December 2025 before rising again from April 2026. ESS publishes monthly releases and the underlying indices by group and region on its price statistics page.

Official sources: ESS: CPI monthly release, August EFY2018 (PDF) · ESS: price statistics

How much did living costs rise in Ethiopia over the past year?

Consumer prices in Ethiopia rose 11.7% on average in the 12 months to August 2026 (EFY 2018), down from 16.0% in the previous 12 months, according to the Ethiopian Statistical Service monthly CPI release. Food prices rose 12.0% on average and non-food prices 11.3%.

The 12-month average smooths out monthly swings and is the better guide to how much more a household paid over a whole year. The year-on-year rate for August alone was higher, at 15.1%, because inflation picked up from April 2026. The release shows annual average inflation above 30% in 2021/22 and 2022/23, so prices have risen a long way over five years.

Official sources: ESS: CPI monthly release, August EFY2018 (PDF)

Which costs are rising fastest in Ethiopia?

Education prices rose 25.3% in the year to August 2026, the fastest of any non-food group, according to the Ethiopian Statistical Service monthly CPI release. Transport rose 15.6%, health 12.8%, communication 8.0% and restaurants and hotels 15.3%. Among food items, non-alcoholic beverages and coffee rose 29.2%.

These are year-on-year changes in the price indices for each group of the consumer price index. Education covers school and tuition fees. How much each group matters to a household depends on what it spends; the CPI weights reflect an average household's budget.

Official sources: ESS: CPI monthly release, August EFY2018 (PDF)

How fast are rents and utility costs rising in Ethiopia?

The housing, water, electricity, gas and other fuels group of Ethiopia's consumer price index rose by 13.3% to 13.7% in the year to August 2026, according to the Ethiopian Statistical Service monthly CPI release; the release gives both figures in different sections. Furnishings and household equipment rose 15.2% to 16.7%.

The group covers rents and the cost of water, electricity and household fuels. Electricity is sold to households by the Ethiopian Electric Utility. Headline inflation in the same month was 15.1%, so housing and utility costs rose a little more slowly than prices overall.

Official sources: ESS: CPI monthly release, August EFY2018 (PDF) · Ethiopian Electric Utility

What is the poverty rate in Ethiopia?

33.1% of Ethiopians lived below the national poverty line in 2021, up from 23.5% in 2015, according to the World Bank World Development Indicators. At the international line of US$3.00 a day (2021 prices), the World Bank puts the rate at 38.6% in 2021.

The national line is set in birr for Ethiopian living costs, while the international line allows comparison between countries, so the two give different rates. Both come from household consumption surveys, the latest in 2021, before the 2024 exchange rate reform and the inflation that followed, so later poverty levels may differ. The Ethiopian Statistical Service runs the household surveys behind both figures.

Official sources: World Bank: poverty at national poverty lines, Ethiopia · World Bank: poverty at $3.00 a day, Ethiopia

What is Ethiopia's inflation rate?

According to the IMF, consumer price inflation in Ethiopia was 13.2% in 2025. Since 2005 it has ranged from 6.6% (2016) to 44.4% (2008). Sub-Saharan Africa median: 3.4%; Ethiopia is 7th highest of 39. Worldwide: 13th of 165.

How much do people in Ethiopia spend?

$672: that is household consumption per person in Ethiopia for 2025, according to the World Bank. That is the highest since at least 2011. Across Sub-Saharan Africa the middle value was $840, and Ethiopia placed 23rd highest of 37. World rank, highest first: 110th of 124.

What is the extreme poverty rate in Ethiopia?

38.6%: that is the share of people living on less than $3.00 a day in Ethiopia for 2021, according to the World Bank. In 2010 the figure was 37.4%. Sub-Saharan Africa median: 38.6%; Ethiopia is 7th highest of 13. Worldwide: 7th of 80.

What is the poverty rate in Ethiopia?

The World Bank puts the share of people below the national poverty line in Ethiopia at 33.1% in 2021. It was 29.6% in 2010. It is 13th highest of 13 in Sub-Saharan Africa, where the median is 41.2%. Of 72 countries with 2021 data, 18th highest.

What is Ethiopia's Gini coefficient?

In 2021, the Gini index in Ethiopia was 31.1, according to the World Bank. It was 33.2 in 2010. Across Sub-Saharan Africa the middle value was 36.2, and Ethiopia placed 13th highest of 13. Worldwide: 59th of 80.

How many people in Ethiopia face food insecurity?

60.1%: that is moderate or severe food insecurity in Ethiopia for 2024, according to the FAO. The peak was 61.4% in 2023 and the low 56.2% in 2015. Sub-Saharan Africa median: 60.5%; Ethiopia is 18th highest of 34. Worldwide: 21st of 135.