ADDIS ABABA, May 7 – Ethiopia’s inflation rate accelerated above 10% for the first time in five months in April, as fuel supply disruptions pushed up transportation and food costs across the economy.
Annual consumer inflation rose to 11.7% in April from 9.4% in March, according to data released by the country’s statistics agency. Food prices, which make up more than half of the inflation basket, increased 2.4% during the month, while the category covering gas and other fuels rose 3%.
The latest increase comes after Ethiopia raised gasoline prices by about 35% over the past four weeks following supply disruptions linked to the conflict involving Iran and the closure of the Strait of Hormuz, a key route for global oil shipments.
Authorities have also urged residents to rely more on public transportation in an effort to reduce pressure on fuel stations, where shortages have led to long queues and extended waiting times for motorists.
The renewed rise in prices threatens to slow Ethiopia’s progress in bringing inflation under control after consumer-price growth peaked at around 37% in 2022.
Last month, National Bank of Ethiopia kept its benchmark interest rate unchanged at 15% as policymakers sought to contain inflation while supporting economic growth.
The East African economy is still expected to expand by more than 10% during the current fiscal year, supported by reforms and infrastructure investment, although higher fuel and import costs are adding fresh pressure to household spending and businesses.
