# Prices and the cost of living in Somalia > Inflation and the cost of living in Somalia: the official price index, which costs rose most, grain prices after the 2025 drought, and forecasts. Source page: https://calankii.com/en/economy/prices-and-inflation/ Last checked: 2026-11-12 Publisher: Calankii (https://calankii.com) ## The latest figure Somalia's consumer price index rose **6.7 percent** in the twelve months to July 2026, according to the Somali National Bureau of Statistics. The annual rate was 8.4 percent in May and 8.1 percent in June ([SNBS, Consumer Price Index, July 2026](https://nbs.gov.so/wp-content/uploads/2026/08/CPI-_July-2026.pdf)). In 2025 prices rose 3.7 percent on average, up from 3.3 percent in 2024, and inflation climbed from 4.0 percent in January 2025 to 5.3 percent in December 2025 ([Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf)). In March 2026 it reached 7.8 percent ([SNBS, March 2026 CPI report](https://nbs.gov.so/wp-content/uploads/2026/05/March-CPI-Report-2026.pdf)). ## What costs more Year to July 2026, by type of spending ([SNBS, CPI July 2026](https://nbs.gov.so/wp-content/uploads/2026/08/CPI-_July-2026.pdf)): - **Restaurants and hotels:** up 17.3 percent (restaurant meals up 22.0 percent). - **Recreation and culture:** up 14.3 percent. - **Health:** up 9.9 percent (outpatient care up 17.1 percent). - **Education:** up 9.3 percent (early childhood and primary schooling up 16.6 percent). - **Housing, water, electricity and fuel:** up 8.6 percent (water up 16.5 percent). - **Clothing and shoes:** up 8.6 percent. - **Food and soft drinks:** up 7.9 percent. Some costs fell: **transport** (down 1.6 percent), **phone and internet** (down 1.8 percent) and personal care (down 1.3 percent) (same source). ## How prices are measured The bureau collects prices twice a month, in the first and third weeks, in Mogadishu and in every federal member state. The index covers **537 items** in 13 groups, weighted by what families reported buying in the 2022 national household survey ([SNBS, CPI July 2026](https://nbs.gov.so/wp-content/uploads/2026/08/CPI-_July-2026.pdf)). ## Grain prices after the drought The Deyr rains of October to December 2025 failed. In southern Somalia, the Deyr cereal harvest was about 15,600 tonnes, 83 percent below the long-term average and the lowest since 1995 ([Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf)). The UN Food and Agriculture Organization reports that between January and June 2026, sorghum prices in Baidoa rose about 25 percent and maize prices in Qoryooley about 70 percent. They eased in July with the Gu harvest but were still about **double** their level a year earlier. In Mogadishu, cereal prices were 25 to 45 percent above the year before ([FAO GIEWS, Somalia country brief](https://www.fao.org/giews/countrybrief/country.jsp?code=SOM)). Between November 2025 and May 2026, the price of wheat flour rose about 66 percent in Wanlaweyn and 42 percent in Qoryooley ([SNBS, June 2026 report](https://nbs.gov.so/wp-content/uploads/2026/06/June-2026-%E2%80%93-REPORT-5.pdf)). ## Why prices move - **Imports:** food is Somalia's largest import, so world food and fuel prices pass straight into local markets ([Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf)). - **Rain:** failed seasons cut local harvests and raise grain prices (FAO, above). - **Transport and distribution:** in March 2026 the bureau reported cost pressure in transport, food distribution and imported goods ([SNBS, Inflation Outlook, April 2026](https://nbs.gov.so/wp-content/uploads/2026/04/Somalias-Inflation-Outlook.pdf)). - **The shilling:** small purchases in shillings cost more when the shilling falls. It lost 7.1 percent against the dollar in 2025. See [The Somali shilling and the dollar](/en/economy/somali-shilling-and-the-dollar/). ## Forecasts The IMF expects inflation of **6.5 percent** in 2026 ([IMF, 5 October 2026](https://www.imf.org/en/news/articles/2026/10/05/pr26319-somalia-imf-staff-concludes-2026-article-iv-consultation-mission)). The World Bank expects about 6 percent ([World Bank, May 2026](https://www.worldbank.org/en/news/press-release/2026/05/13/somalia-growth-continues-but-shocks-and-aid-cuts-intensify-risks-to-jobs-and-livelihoods)). The Association of African Central Banks uses 7 percent as its ceiling for price stability ([Central Bank of Somalia, Annual Report 2025](https://centralbank.gov.so/wp-content/uploads/2026/08/Annual-Report_2025.pdf)). ## What it means for families A 2026 joint assessment by the national statistics bureau, FAO, FSNAU and WFP found that **47 percent** of households cannot pay for a minimum basket of food and other essentials without help. Among displaced families the share is **77 percent**. For food alone, 29 percent of households fall below the minimum, rising to 53 percent among displaced families and 38 percent in rural areas. Aid lowers the share below the full basket only from 47 to 43 percent ([CFSVA 2026, SNBS, FAO, FSNAU and WFP](https://fsnau.org/downloads/CFSVA-2026-SNBS-FAO-FSNAU-WFP.pdf)). With aid falling, rising prices weigh hardest on poor and displaced families. --- I want to help with this: email hello@calankii.com. Fix this page: email hello@calankii.com with the page link and your source.