January 8,2026 Addis Ababa
The Consumer Price Index (CPI) results for December EFY 2018 E.C indicate a continued easing of inflationary pressures in the economy compared to the same period of the previous year. The CPI, which measures changes in the general level of prices of goods and services consumed by households, is compiled and disseminated on a monthly basis to support informed economic decision-making.
In December EFY 2018, the year-on-year general inflation rate stood at 9.7 percent, marking a substantial decline from the 17.0 percent recorded in December EFY 2017. This reduction reflects a continued moderation in price pressures across the economy.
On a month-to-month basis, general inflation declined by 0.3 percent during the reporting month, compared to an increase of 0.8 percent in the same month of the previous year, indicating short-term price stability.
The year-on-year inflation rate for the Food and Non-Alcoholic Beverages division was recorded at 9.8 percent in December EFY 2018. This indicates that food prices increased, on average, by nearly ten percent compared to the same month of the previous year. The rise in food inflation was mainly driven by higher prices for several key food commodities, including vegetables, meat, sugar and confectionery products, dairy items, oils and fats, fruits, and other food products, while prices of bread and cereals remained relatively stable. Despite these increases, the overall food inflation rate has shown a steady declining trend since December EFY 2017, contributing to the observed reduction in general inflation.
The year-on-year non-food inflation rate stood at 9.6 percent in December EFY 2018, reflecting price increases in non-food goods and services compared to December EFY 2017. The rise in non-food inflation was associated with higher prices in alcoholic beverages and tobacco, housing-related costs, household furnishings and equipment, health services, transport, communication, education, restaurants and hotels, as well as miscellaneous goods and services. Both food and non-food inflation registered increases on an annual basis during the reporting month; however, their magnitudes remained considerably lower than those observed in the same period of the previous year.
Overall, the inflation data for December EFY 2018 E.C confirm a continued slowdown in inflationary pressure in the economy. While price increases persisted in selected expenditure categories, the general inflation rate remained substantially lower than its level a year earlier. The CPI continues to serve as a critical statistical tool for monitoring price developments and assessing changes in the cost of living, and inflation trends will continue to be closely monitored in subsequent months.