ADDIS ABABA, Ethiopia — Ethiopia’s inflation rate has continued its downward trajectory, with the Central Statistics Agency reporting a year-on-year rate of 13.6% in March, down from 15% in February.
This decline marks a significant improvement from the approximately 30% inflation experienced over the past three years.
The Consumer Price Index (CPI) reached 502.36 points in March, up from 489.15 in February, indicating a monthly inflation rate of 2.7%.
Central bank governor Mamo Mihretu projects that inflation will further decline to 10% in the 2025/2026 fiscal year, the lowest in a decade.
This projection is attributed to economic reforms under a four-year, $3.4 billion program with the International Monetary Fund, which includes floating the Ethiopian birr and restructuring national debt.
In parallel, the Ethiopian Ministry of Revenue announced a significant milestone, collecting over 653 billion birr in tax revenues during the first nine months of the fiscal year ending in June. This represents a 74.56% increase compared to the same period last year.
The government aims to collect 1.5 trillion birr ($12.5 billion) in the current fiscal year, more than doubling its previous revenue target. To achieve this, new taxes have been introduced, including value-added tax on banking services, property taxes, and an excise tax on telecommunication services.
According to local economists, this developments indicate Ethiopia’s commitment to economic stabilization and growth through fiscal reforms and improved revenue collection.
