Ethiopia’s annual inflation rate edged down to 9.7% in February 2026 from 9.8% in January. Price growth slowed for non-food items (8.1% vs. 9% in January) but picked up for food (10.8% vs. 10.4%). On a monthly basis, consumer prices rose 0.4% in February, after a 0.7% increase in the previous month. Headline inflation dropped into single digits in December 2025 for the first time in many years. Prime Minister Abiy Ahmed recently noted that targeted subsidies, income adjustments, supply-chain reforms, and improvements in key public services such as electricity and water were instrumental in achieving this milestone.