Ethiopia’s inflation rate is expected to drop to 10% in the fiscal year 2025–2026

Ethiopia’s central bank president, Mamo Mihretu, stated Thursday that the government’s reform program is likely to bring Ethiopia’s inflation down to 10% in the upcoming fiscal year, the lowest level in ten years.

The country in East Africa signed a four-year, $3.4 billion program agreement with the IMF last July and is currently implementing extensive reforms, such as floating its birr currency and reorganizing its debt.

Although it had already dropped to 13% in March, Mamo stated during a briefing at the IMF and World Bank spring meetings in Washington that inflation has been a significant problem for Ethiopia, having reached around 30% for three years in a row. July through July is the fiscal year of the nation.

According to Mamo, Ethiopia has been able to boost its foreign exchange reserves, and he anticipated that exports would treble and remittances would rise by at least 25%.

“One of the most serious issues that we faced before the reform was the dwindling and falling reserves that we had to worry about on a daily basis,” stated him.

“Our level of reserves tripled following the change. The amount of reserves in the banking system doubled. This change clearly had an effect on the economy by increasing and stimulating inflows.