Ethiopia’s annual inflation rate eased for the third consecutive month to 29.3% in June 2023, the lowest level since July 2021, compared to 30.8% in May, with price increases slowing for almost all components. The birr has continually depreciated over the past five years. The exchange rate has reached unprecedented levels: the official rate is around 55 birr per USD, while the black-market rate exceeds 110. The World Bank and the IMF have recommended a transmission to a floating exchange rate to eradicate the parallel market and establish currency stability.