How to install ansible on amazon aws?

Using pip (alone, not in conjunction with yum) is probably the best option right now on Amazon Linux. I'd suggest getting rid of the yum-installed copy if it's still there.

The RPM specs in epel and epel-testing (as of 1.9.2) currently handle only RHEL, Fedora, and SuSE, and the defaults are installing everything under Python 2.6, where the latest Amazon Linux has default Python 2.7. A bit of work will be required to get the RPM install working under Amazon Linux...

It appears that python library files do not have correct permissions by default. Running this fixed it for me.

[root@ip-10-0-0-11 ansible]# pip install ansible