The study aimed to find out what causes inflation in a specific area in Ethiopia. Researchers used different regression models to analyze factors like money supply, taxes, and exchange rates. They found that food prices have a bigger impact on inflation than non-food prices. Factors affecting inflation differ between food and non-food sectors. The study suggests that short-term adjustments and long-term trends affect inflation rates. The data showed that certain factors like money supply and access to raw materials play a significant role in inflation. To control inflation, policymakers need to focus on addressing these key factors.