Ethiopia has the highest cost of living in Africa in 2025, according to the Cost of Living Index by Country 2025 report.
Ethiopians are now spending more money on basic necessities such as food and transportation, the report highlights, as published by local media outlets.
Globally, Ethiopia ranks 53rd with a cost of living index of 46.5—the highest among all African countries, the report adds. The high cost of food products is cited as one of the main reasons for this ranking.
Although rents in Ethiopia remain relatively low compared to many regions of the world, the combined cost of rent and living expenses remains very high for the majority of the population. The report also notes that transportation and services are becoming increasingly expensive.
This rise in the cost of living comes as the Ethiopian government is carrying out major macroeconomic reforms, including the liberalization of the exchange rate regime and the opening up of the banking sector.