Ethiopia imposes price caps to fight inflation
“The measure is meant to stabilise the market by regulating price gouging and hoarding,” Meles said at the event.
Officials accused traders of inflating prices off the back of global price hikes and Ethiopia’s recent currency devaluation.
Addis Ababa devalued the birr currency by 16.7 percent in September, a move that was welcomed by the International Monetary Fund , and targets an annual inflation rate of 6 percent over the next five years.
Analysts though say there is a risk inflation will rise again following the devaluation.
After soaring in 2008 and the first half of 2009, the rate of inflation plummeted from July 2009 to October 2009 after the government stopped state borrowing and increased bank reserves.