Opposition blames government for the rise of inflation in Ethiopia

By Simegnish Yekoye

ADDIS ABABA, Ethiopia - Coalition for Unity and Democracy (CUD) party blamed the Ethiopian government for the current inflation in Ethiopia saying explanations given by the government are clear indications of the government’s inability to identify the cause of the current inflation.

What is being observed in the upward spiral of prices in cereals and other essential consumer goods is a phenomenon that has never been witnessed at any other time in recent memory, said CUD in its statement.
The party also requested for the formation of a committee represented by various interest groups and experts to identify the real causes of the current inflation.

The Minster of Trade and Industry referred last week to the inflation as a routine phenomenon that could happen in any economy. It said the government is taking measures towards stabilizing the inflation referring to the rise of price on edible oil, sugar, cement, Teff and fuel.

While addressing the parliament, Prime Minster Meles Zenawi had said the increase in prices for cereals is due to the farmers’ reluctance to bring their cereals to the market. “But the Ministry of Trade and Industry blamed businessmen for hoarding cereals in direct contradiction to the Prime Minster’s statement,” said Temesgen Zewde, chairman of the party.
The chairman added, at present, common staples such as cereal (Teff), red pepper, cooking oil, sugar and fuel are beyond the purchasing power of middle-income people, leave alone citizens at the extreme poverty level who are the majority of the urban dwellers.

Though the government says the inflation rate currently is at 12%, CUD claims the inflation rate is 20% - 25% referring to research outcomes of the World Bank.
The party in its statement urged the government to fulfill its responsibility by allowing businessmen to import cereals duty free and subsidize fuel prices for people at lower income level affected by the ever-increasing and exorbitant prices.

“It is hard to imagine how families with no regular income could be able to manage life under these conditions,” Temesgen said.
Referring to the increase of house rent due to the millennium and coming of the non-resident Ethiopians to the country, the party urged the government to find a temporary solution to the sky rocketing cost of rent for private houses. “We need the government to interfere by advising, warning or stopping them if necessary,” said Mohammed Ali, member of CUD. •