Two days after sanctioning traders from making price changes, hoping to ward off inflationary pressure, the Addis Abeba City Administration officials have banned landlords in the capital from increasing rent for three months.

The authorities hope the measure will halt the runaway cost of living where no less than 40pc of household income is spent on rent. Approved unanimously during a recent cabinet meeting, the latest in a series of restrictive measures from government officials also prohibits the eviction of tenants effective August 24, 2021.

The Administration of Prime Minister Abiy Ahmed (PhD) has been on a course to put a handle on the exasperating cost of living in the city over the last few weeks, blaming skyrocketing prices on "illicit activities" and "economic sabotage." For the last three years, there has been a fleeting increase in food and non-food prices, though it has been particularly unbridled this year.

The Central Statistics Agency puts the yearly moving average inflation in the capital at 23pc for July, three percentage points lower than the national average. It was largely driven by a surge in food prices, which stood at 30pc. However, the city's officials believe the inflationary pressure is induced artificially and not caused by underlying economic factors. In a statement the Mayor's Office issued on Saturday, August 28, they urged tenants whose rentals increase over the next three months to report to Woreda offices.

The rent freeze is subject to extension if authorities deem it fit, the statement said. Last year, during the onset of the COVID-19 pandemic, the city Administration enacted a similar freeze.

Assefa Gebregiorgis, a broker operating in CMC and Ayat areas, has recently seen a tremendous increase in rentals. Rental for a studio apartment in the area has almost doubled to 5,000 Br over the past six months, which he sees as "incomprehensible." Dwelling in a rented house himself, Assefa commends the decision by the city cabinet; he believes the measure could potentially stabilise the ballooning cost of living.

However, this may work for a while, but it might also create chaos with potential disagreements between tenants and landlords, says Kiflu Degefe (PhD), a macroeconomist working on trade policy. The freeze on rental fees does not make economic sense.

"The Administration might have considered it a temporary solution," he said.

Two weeks ago, city authorities announced all services related to property transfers should be halted in a memo addressed to all government offices providing land lease-related services.

These measures stem from a collaborative venture of entities under the City Administration: a task force is in charge of keeping peace and security; another to counter "economic sabotage" and stabilise the market; and, a third tasked to do a charm offensive in an awareness creation campaign among the public.