A sharp rise in the prices of essential goods is causing significant hardship for both traders and consumers in Ethiopia, as the cost of living continues to escalate. The sudden increases in prices are impacting a wide range of products, including cooking oil, lentils, and the country’s renowned coffee, raising concerns about economic stability and food security.
Recent reports indicate that the price of five liters of cooking oil has surged from 1,200 ETB to 1,600 ETB in just a few months. Lentils, a staple source of protein in the Ethiopian diet, have also seen a notable price hike, climbing from 200 birr per kilogram to 275 birr. Perhaps most alarming is the dramatic increase in coffee prices; a kilogram that once sold for 400 birr is now priced at 700 birr—a staggering 75% rise.
“It’s very hard to keep track of,” says Alemnesh Degenet, a mother of four living in Akaki, Addis Ababa. “Every time I go shopping, the prices have gone up again. We’ve had to cut back on many things. Meat has become a luxury; we struggle to buy even vegetables.”
Alemnesh’s sentiment is echoed by Biserat, a day laborer who notes that while his salary remains unchanged, the prices of essential goods have skyrocketed. “I used to be able to buy enough food for my family, but now I’m struggling. We’re eating less, and I worry about my children’s health.”
Traders are also feeling the pinch as they navigate rising wholesale costs while facing increasingly price-sensitive customers. “The price of coffee has become unpredictable,” says a local coffee shop owner. “My suppliers raised their prices, so I had to do the same, but customers are complaining. I’m worried about losing business.”
Emebet, who sells lentils and cooking oil at a local market, describes similar challenges. “Wholesale traders tell us that prices are rising due to global inflation and supply chain issues,” she explains. “We have no choice but to pass these costs onto our customers, but they are unhappy. They understand it’s not our fault, but they simply can’t afford these prices.”
The situation is further complicated by the depreciation of the Ethiopian birr, which makes imported goods more expensive and contributes to overall price increases. This is particularly concerning for items that rely on foreign products, such as cooking oil.
According to the Ethiopian Statistics Service (ESS), overall inflation fell slightly from 17% in December to 15.5% in January 2025. However, food items accounted for 15.8% of this inflation rate while non-food items contributed 15%. Despite this slight decrease in overall inflation, both consumers and traders express ongoing concerns about rising living costs.
“We want the government to intervene and do something,” says Meseret, a concerned consumer. “These price increases are hurting families. We need some kind of price control or subsidies for essential goods.”
The coffee shop owner suggests that government support for local producers could help increase the supply of key commodities. “If we could produce more cooking oil and other essentials locally, we wouldn’t be so dependent on foreign products and wouldn’t be vulnerable to these price fluctuations.”
The current economic climate reflects a delicate balance between supply and demand and highlights the vulnerability of consumers and small businesses to economic shocks. Addressing the root causes of this crisis—such as strengthening local production capabilities, improving supply chains, and stabilizing exchange rates—will be critical for ensuring economic stability and the well-being of Ethiopian citizens.
In response to rising prices, the City Administration of Addis Ababa’s Trade Bureau has announced plans to take action against traders who unjustifiably increase product prices, including revoking their licenses if necessary. The bureau emphasized that it is aware of complaints regarding unnecessary price hikes and has systems in place to address these issues.
While officials assert that there is no shortage of products in the market and that price reductions are expected on most items, consumers remain anxious about their financial futures as they navigate this challenging economic landscape.
