Citizens of Cape Verde island are feeling the effect of the Russian-Ukraine war as they lament the high cost of living with its attendant inflation that has continued to skyrocket.
According to statistic reports in the country, prices of goods increased by 0.7 percent in March and accumulated a rise of 7.1 percent compared to the same month of 2021, indicating the latest data from the Cape Verdean Instituto Nacional de Estatisticas (INE), an economic research institute run by the government.
“From corn to olive oil, rice, as well as fuel, bread, sugar, flour, and meat, are some of the products whose price rises Cape Verdeans consider exaggerated and call for intervention from the government and regulatory authorities,” the INE said on Tuesday.
“Many people are now hoping that the government will step in to stem the ever-increasing prices of food, petrol and other services in the country.
“Fuel prices rose by 5 percent in April, the maximum limit stipulated by the government, but have accumulated an average rise of 42.6 percent in the last year, as well as a rise of 7 percent since last January,” it added.
Some businessmen are calling on the state to control the prices of commodities entering the country to curb traders taking advantage of the situation.
“The rise in prices is worrying at all levels, especially for food products. We are aware of the international situation, but not everything is due to the international situation,” Lenine Mendes, a Cape Verdean businessman said.
“Often, producers and traders take advantage of crises to raise prices. We don’t have a law that limits prices, there is no supervision and control,” Mendes added.
While inflation is on the rise, Prime Minister Ulisses Correia e Silva, has ruled out the possibility of an increase in the national minimum wage due to the economic crisis.
“In a crisis situation, increasing the minimum wage would be transferring increased problems to the private sector, which may even affect existing jobs,” Correia e Silva said during a debate in the National Assembly, ahead of the escalating food and fuel prices caused by the war in Ukraine.
Currently, Cape Verde’s national minimum wage stands at 13,000 escudos (117 euros) in the private sector and 15,000 escudos (135 euros) in the civil service.