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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Thu Jan 13 2011 - 09:35:22 EST
Ethiopia cracks down on price caps violators
Thu Jan 13, 2011 12:47pm GMT
* Addis set caps for 17 commodities
* 103 businesses already shut down
ADDIS ABABA, Jan 13 (Reuters) - Ethiopia has penalised retailers and
suppliers in the capital who raised the prices of consumer goods by amounts
higher than caps set in January, authorities said on Thursday.
The Horn of Africa nation imposed price ceilings earlier this month on 17
imported and domestic commodities including rice, bread and sugar, in an
attempt to ease inflationary pressures.
Under the new proclamation, retailers face closure, heavy fines and jail
time if found guilty of repeated transgression, and are obliged to list the
prices of all their items for routine inspection.
About 103 businesses have already been closed down in Addis Ababa since
January 6, according to official figures. Authorities have said more items
will be subject to an upper price limit in the coming weeks.
"We are at an early stage right now and this is just the preliminary
warning," Shisema Gebreselassie, director of the Addis Ababa Trade and
Industry Bureau, told Reuters.
"Some of them may have already had their businesses re-opened, but will face
more severe penalties if they repeat their mistakes," Shisema said.
Kassa Getu, head of trade and industry promotion in the capital's Bole area,
said 46 of the 103 were in his district.
"They had inflated prices beyond the cap. There are ordinary shops,
restaurants and other outlets among them," he told reporters.
Ethiopia's annual inflation rate slowed to 10.2 percent in November from
10.6 percent the previous month, but retail prices of some food items such
as bread have doubled over the past year.
It targets an annual inflation rate of 6 percent over the next five years
after hitting a high of 64.2 percent in July 2008, before entering a period
of deflation from July to October last year.
Officials say traders have artificially inflated prices on the back of
global price hikes and Ethiopia's recent currency devaluation.
Addis Ababa devalued the birr by 16.7 percent in September, a move that was
welcomed by the International Monetary Fund [ID:nLDE6801J6]. (Reporting by
Aaron Maasho; Editing by Helen Nyambura and Patrick Graham)
C Thomson Reuters 2011 All rights reserved
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