🤯 Feelings On The Ground

Welcome to the 91st edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

Here’s what’s coming your way:

• 🤦🏾 ESS says “Inflation is Down”. Ethiopians Reply “በጥፊ ነው ምልህ!”

• 💸 Debunking Cash vs Transfer Psychology

• 🖼️ Big Picture

Thanks for reading!

Inflation is Down. Prices Have Gone Up.

Economy

The Story in Three Lines

→ Official inflation has cooled and even dipped into single digits.
→ Everyday prices, however, are still moving like they didn’t hear the news.
→ Both can be true at the same time. Unfortunately.

First, the Official Numbers

Let’s start with what the data actually says.

According to the Ethiopian Statistical Service (ESS), armed with the finest calculators around, the Consumer Price Index for December 2025 shows:

• Headline inflation, or የዋጋ ግሽበት as its known around these corners, eased to around 9.7% year-on-year, the lowest rate since 2019.

• Food inflation also slowed to around the same range.

• Month-on-month prices were slightly down -1.4%, meaning prices (according to ESS) actually declined between November and December. *Cough* *Cough*

On paper, this is a big deal. These are the kind of statistics you might see praised in a policy report or a finance minister’s speech. It sounds like progress. It should be progress.

Except….well, now comes the awkward part.