Ethiopia – Main opposition party says the ruling party failed to control runaway inflation
According to Central Statistical Agency (CSA), April’s 2011 general year-on-year inflation has increased by 29.5% on top of March’s 2011 inflation of 25%.
In six pages press release issued on May 19, 2011, EDP reminded the ruling party EDP’s concerns about the rising cost of living as back as 4 years ago and its call for action before it become out of control. Nevertheless, EDP states, EPRDF chose to ignore this concerns rather than taking appropriate measures to prevent rising cost of living.
The press release identifies four EPRDF policies that have contributed to the steep rise in inflation in Ethiopia.
First, uncontrolled government monetary policy which flooded the market with money through infrastructure development
Second, EPRDF’s revolutionary democracy policies that are bent on interfering with the economy through heavy handed threats and price control rather than addressing the supply side of the economy.
Third, for failing to create a policy that promote competitive economic environment by letting few businesses to have undue control over the imports.
Fourth, for failing to invest in the agricultural sector to increase the supply side of the agricultural sector that could match the rising demand.
Having highlighted the problem, EDP called on the ruling party to take the issue seriously and take measure that are based on sound economic studies than through threats and interference in the market which lead to shortage of supplies and sudden jump in the cost of living.