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Cape Verde’s economy is another victim of the Russian -Ukraine war as the tiny country is facing high inflation accompanied by a high cost of living. The prices of food, petrol, and other essential services, of late, have registered a phenomenal increase
Cape Verde’s economy is another victim of the Russian -Ukraine war as the tiny country is facing high inflation accompanied by a high cost of living. The prices of food, petrol, and other essential services, of late, have registered a phenomenal increase.
The citizens are calling on the government to take prompt action to buttress the price increase. Some businessmen are now calling on the state to control the prices of commodities. They also told the government to prevent the traders from taking advantage of the situation.
The rise in prices is worrying at all levels, especially for food products. People feel that everything is not due to the international situation. Often, producers and traders take advantage of crises to raise prices. Prices in Cape Verde increased by 0.7 percent in February and accumulated a rise of 7.1 percent compared to the same month of 2021.
Prices of olive oil, rice, fuel, bread, sugar, flour, and meat, are some of the products which have registered a quantum jump in prices. Cape Verdeans called for intervention from the government and regulatory authorities to check the price rise.
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Fuel prices rose by 5 percent in April, the maximum limit stipulated by the government. The rise works out to an average of 42.6 percent in the last year, as well as a rise of 7 percent since last January.
Cape Verde’s prime minister, Ulisses Correia e Silva, earlier ruled out the possibility of an increase in the national minimum wage, citing economic woes. Currently, the country has set a national minimum wage of 13,000 escudos (117 euros) in the private sector and 15,000 escudos (135 euros) for government employees. The prime minister had announced in January 2020, before the covid-19 pandemic, that the minimum wage for the private sector in Cabo Verde would increase to 15,000 escudos (135 euros) in 2021, an increase of over 35 percent in one parliamentary term. However, such assurances could not be implemented due to the severe financial strain being experienced by the government.
