Efforts to reduce inflation registered more success than expected: PM Meles

Addis Ababa, April 18, 2012 (WIC) - Prime Minister Meles Zenawi said government efforts to reduce inflation registered more success than expected.

While responding to questions posed by parliamentarians in  the 25th regular session of the House of Peoples' Representatives here on Tuesday, Meles said that the government has carried out successful activities to control money supply at a national level.

The Premier said budget deficit is said to be one of the lowest in the world as the government would not take loans from the National Bank of Ethiopia (NBE).
He said 3.9 percent drop has been made in reserve money at the Bank.

He also said that global economic instability, significant increase on cost of mines, agricultural products and petroleum contributed to the increase in inflation.
Absence of competition in the market system in particular in the wholesale trade in the country is another factor for growth of inflation.

A study is being conducted to organize domestic or foreign investors and create competition in the market system to control inflation, PM Meles said, adding that efforts are underway to stabilize price rise through import substitution and also controlling export of domestic products.

According to Meles, the government has imported eight million quintals wheat as well as sugar and edible oil since last year, he said, adding, there is no shortage in supply of such products at national level rather a distribution problem of the commodities.

“Lack of transparency, efficiency and accountability in the civil service sector resulted in dissatisfaction on part of the public, PM Meles Underlined, adding that measures are being taken to address problems in the civil service sector.