Asres Abitie (PhD)Winta Ekubay2024-03-292024-03-292023-09-21https://etd.aau.edu.et/handle/123456789/2616This research investigates the multifaceted nature of inflation in Ethiopia, aiming to propose effective management strategies. It examines the influence of economic factors such as money supply, exchange rates, and government spending on inflation, while also exploring the potential impact of internal conflicts. Leveraging the ordinary least squares method facilitated by EViews 9 software, the study analyzes data from the Ministry of Finance, including variables such as the Consumer Price Index (CPI), broad money supply (M2), and indicators of internal conflict. Through descriptive and diagnostic analyses, the study establishes correlations between these factors and inflation. The findings highlight significant relationships between inflation and variables like money supply, exchange rates, and GDP, as well as a connection between internal conflicts and inflationary pressures. Consequently, the study recommends targeted policy interventions focused on regulating money supply, stabilizing exchange rates, and controlling government spending to effectively manage inflation in Ethiopia. These insights offer valuable guidance for policymakers aiming to foster economic stability and growth in the countryen-USThesis