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Rising Food Prices Squeeze Household Budgets in Addis Ababa

Capital Ethiopia · 12 hours ago · Read the Full Story on Capital Ethiopia
Rising Food Prices Squeeze Household Budgets in Addis Ababa
AI SUMMARY

Rising food prices and a 14.9% annual inflation rate are forcing households across Addis Ababa to reduce consumption, purchase smaller quantities, and cut back on non-food essentials.

  • Year-on-year national inflation reached 14.9 per cent in September 2026, compared to 13.2 per cent the previous year, according to the Ethiopian Statistics Service.
  • Food and non-alcoholic beverage prices rose by 14.8 per cent year-on-year, with meat increasing by 22 per cent and cooking oils and fats rising by 18.2 per cent.
  • Dairy products and eggs increased by 17.7 per cent, vegetables by 11.4 per cent, and cereals, bread, and pulses by 8.6 per cent.
  • Households in Addis Ababa are responding to rising expenses by purchasing smaller quantities, switching to cheaper alternatives, and skipping meals.
  • Small retailers report that wholesale price increases, such as flour approaching 14,000 birr per 100 kilograms, have led to falling sales volumes as customers buy in smaller increments.
  • Bakeries face higher operational costs for electricity, flour, and transport, forcing them to adjust prices.
  • The Ministry of Agriculture stated that domestic wheat production is sufficient for national consumption, attributing price gaps to intermediaries, excessive markups, and hoarding.
  • The Addis Ababa Trade Bureau held consultations with the Bread Manufacturers Association and is considering support for large-scale producers, such as providing land without lease payments.
  • Economists recommend improving agricultural productivity, reducing unnecessary market intermediaries, and expanding urban social protection programmes.
Read the Full Story on Capital Ethiopia
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