The Ethiopian Economics Association (EEA) has released Research Report 004/2026, The Anatomy of Inflation in Ethiopia: Structural Shocks, Policy Credibility, and the Path to Price Stability.

Inflation peaked at 34.04% in 2022 and eased to 13.21% in 2025. Drawing on descriptive analysis, SVAR model and an expert survey, the report finds that inflation is driven mainly by structural and supply-side factors, that monetary transmission is weak, and that credibility gaps persist: 57.2% of surveyed experts consider official CPI figures unreliable.

The report concludes that the current disinflation is welcome but fragile. It recommends stronger monetary-fiscal coordination, sustained exchange rate reform, credible fiscal consolidation, investment in agriculture and logistics, and greater transparency in inflation data.