Ethiopia's annual inflation rate climbed to 13.9% in June 2026, marking the highest level in a year, according to the Ethiopian Statistical Service.This rise follows a monthly increase from 13.4% in May, with food prices driving much of the surge.Food inflation hit 15.1%, up from 15% in May, while non-food inflation accelerated to 12.2%.Key drivers include higher costs for staples like vegetables, meat, and dairy, alongside price hikes in clothing, household items, and services.The National Bank of Ethiopia raised interest rates by 100 basis points to 16% and tightened credit caps to curb inflation.Despite recent policy adjustments, inflation remains below June 2025 levels but continues to strain households.