Economy
If Inflation is Under 15 Percent, Why Have Tomato Prices Nearly Doubled?
BirrMetrics · 2 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
Ethiopia's headline inflation rate has climbed back to around 15 percent, masking much sharper price increases for everyday household essentials like tomatoes, coffee, and meat.
- A kilogram of tomatoes in Addis Ababa cost an average of 66 birr in June 2026, representing an 85.7 percent increase from 35.53 birr a year earlier.
- Other essential goods also saw steep price hikes, including coffee beans up 53.2 percent, butter up 43.8 percent, and beef up 41.2 percent.
- Ethiopia's annual inflation rate rose to 14.9 percent in September 2026, up from a fiscal year low of 9.4 percent in March 2026.
- Food accounts for approximately 53.5 percent of the national consumer-price basket, with food inflation reaching 15.1 percent in June 2026.
- Cepheus Research & Analytics attributed the renewed inflation acceleration to higher international energy prices, imported production costs, supply disruptions, and monetary conditions.
- The government has allocated 100 billion birr for fertiliser subsidies and 20 billion birr for fuel subsidies in response to rising international costs.
- The National Bank of Ethiopia has moved away from the 24 percent ceiling on annual bank credit growth and increased its policy rate to 16 percent.
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