By Yafet Girma
Inflation in Ethiopia is no longer just an economic term tossed around in policy debates or quarterly reports — it’s a daily reality that determines what families eat, how they travel, and whether children stay in school. For millions, rising prices are eating away at the hope of a better tomorrow.
Over the past few years, Ethiopia has experienced persistent double-digit inflation, with food prices being the most painful. A kilo of onions that once cost 15 birr can now go for 50. Cooking oil has become a luxury item. And for those who earn fixed or low incomes, these increases are nothing short of devastating.
The drivers are many: supply chain disruptions, currency depreciation, regional conflicts, and climate shocks that affect agricultural production. But at the core, it’s a failure of coordinated economic policy that is being felt most acutely in kitchens and marketplaces across the country.
While the government has taken some steps — such as tightening monetary policy or cracking down on hoarding and price manipulation — the measures are often reactive and short-term. Structural issues remain unaddressed: over-reliance on imports, a struggling local production sector, and weak social safety nets.
Economic policy needs to be people-centered. Inflation control should not just be about interest rates and reserve requirements. It should be about food security, affordable transport, job creation, and stabilizing the birr. It should be about protecting purchasing power, especially for the vulnerable.
In response to rising costs, households are making painful trade-offs. Many are cutting meals to two a day, removing protein from their diets, or withdrawing children from school to save money or seek income. Informal credit systems and community saving groups are increasingly being leaned on — but these too have their limits.
The creativity and resilience of Ethiopian households is admirable, but it should not be a substitute for sound governance. People shouldn’t have to strategize daily about how to survive.
What Ethiopia needs is a multi-pronged, long-term response: investment in local food production, better logistics infrastructure, stable exchange rate management, and targeted subsidies for essential goods. Importantly, there must be transparency and consistent communication from policymakers so the public is informed and engaged.
Inflation doesn’t just shrink a nation’s economy — it shrinks its dignity. Ethiopians deserve more than survival; they deserve stability and the chance to build a future.