Yonas Abiye
31 August 2007
Addis Ababa — The main opposition party, Coalition for Unity and Democracy (CUD) on Thursday accused of the government for mishandling and for not being capable to stabilize and control the highly rising of expensive living cost in the country.
In a press conference held at Ras Hotel yesterday the coalition issued seven statement recommendations urging the government to pay particular attention for the issue.
"What is being observed in the upward spiral of prices in cereals, and other consumable goods is a phenomenon that has never been witnessed at any other time in recent memory", the statement said.
"The explanations provided by the government is simply to attribute the inflation as a natural consequence of the growth of the economy; and the suggested cure for the inflation, and its destructive effects in the lives of citizens is even more (than the) growth of the economy." "The conflicting explanations given by the officials are clear indications of the government's inability to identify the cause of the current inflation." Chairman of CUD, Temesgen Zewdie told local and international journalists adding that common commodities such as, cereal (teff), pepper, cooking oil among others are beyond the purchasing power of middle-income people.
According to Temesgen, the government's action to stabilize the sky rocketing prices of consumable goods like oil and sugar that has been functional early this week is "too little and to late" "Inflation is alarmingly increasing like fire. But government's attempt to control and stabilize the living cost is too little and too late. For the past two years the public suffers this unbearable problem. The government could have taken action before the problem got complicated", he said.
Endeshaw Molla, member of the Coalition on his part said "It should not be fair or a lasting solution to try to intervene on two or few items like sugar and oil separately for the exasperating situation of the current inflation" "Of course (even if) we welcome the government's decision to lowering these particular items' price, its role should be extended beyond this," he said.
Endalkachew further said the government as a government could not discharge its responsibility. Whatever the government has been claiming it subsidizes fuel oil, the subsidy is too little he said stressing the need for increasing the fuel subsidy.
Last week Ministry of Trade and Industry said it subsidized about four billion birr in the last few years regarding petroleum to stabilize the market and vowed to extend an additional 450 million birr subsidy for the next few months assumingly the international price staying at the current's one.
CUD urged the government in the statement to immediately form a committee represented by various interest groups and experts to identify the real causes of the current inflation and consumer associations and Cooperatives at the 'Kebele' level to directly purchase cereals from the farmers or farmers Cooperatives.
The statement also called on the government find "a temporary solution to the sky rocketing cost of rent for private homes."
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