Ethiopia has seen a notable rise in prices for a range of consumer goods as the government implements macroeconomic reforms.
The reforms, announced on July 28, 2024, have transitioned the country from a fixed foreign currency exchange rate system to a market-based exchange rate.
As a result, the value of the Ethiopian birr has plummeted, with the US dollar now exceeding 100 Ethiopian birr, up from the previous rate of about 57 birr.
APA on Thursday learned that prices for some products, particularly imported goods and essential domestic items like oil, sugar, and onions, have risen significantly.
This dramatic shift in currency valuation has had a profound impact on the cost of living, prompting the government to crackdown businesses accused of price hikes and hoarding.
APA reported that a five-liter container of cooking oil that previously cost 900 birr is being sold for as much as 1,500 birr. Similarly, sugar, which used to be priced at 100 birr per kilogram, has now risen to 120 birr.
Amidst the price surge, the government has moved to crack down on businesses accused of exploiting the situation.
The Addis Ababa Trade Bureau said it has shut down and 87 traders have been brought to justice for imposing unwarranted price hikes and hoarding goods under the guise of foreign currency management regulations.
MG/as/APA