The Price Floor Problem
Why Lower Inflation Does Not Automatically Translate Into Household Relief When the Cumulative Price Level Remains Elevated
Executive summary
What this brief covers.
Stabilisation at 9.7% inflation means the basket of necessities is getting more expensive more slowly, not that it has stopped. The consumer price level is 5.4 times its 2016 base. An Afrobarometer survey found that 87% of Ethiopians went without a cash income at least once in the previous year.
World Bank; IMF; UNDP; Afrobarometer; National Bank of Ethiopia
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Suggested citation
Tamene, Edosa. “The Price Floor Problem.” InfoPlate Media and Consulting, April 24, 2026.
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