The government started to sell staple foods directly to consumers as shortages emerged following the introduction of state-imposed price ceilings in January. The government took a radical policy approach to limit rising inflation by setting price ceilings on 20 basic goods from January 6th (February 2011, Economic policy). The price ceilings are estimated at between 5% and 45% lower than current market prices for goods including bread, meat, rice, sugar, pasta, cooking oil, and some fruits and vegetables.

In early February Mr Meles warned retailers that if they did not make the market work under the new prices the government would begin selling directly to consumers (March 2011, Economic policy). Many retailers have since refused to sell products covered by the new ceilings, saying that it is not profitable, especially given rising global commodity prices. As a result, in March Mr Meles announced that the market had failed and that the government would sell staples such as sugar and edible oil through government-owned shops. Long queues subsequently sprang up at government shops, where the goods went on sale for prices in line with the ceilings introduced in January.

The Ministry of Trade claims that the government ceilings allow sellers to make a profit of between 4% and 6%, which it says is more than adequate for sellers to make a living. The shortage of goods and long queues indicate that the system is not functioning efficiently, and the price ceilings have not lowered prices. Indeed, the year-on-year inflation rate for April accelerated to almost 30%. The authorities claim that the government shops are a temporary measure until the market stabilises and private sellers begin to function within the system again. Even if this were to eventually happen, it is likely to take some time, and until then Ethiopia will have Soviet-style food lines and shortages. The government appears unwilling to back down, however, and clearly still believes that it is taking the right approach. It even introduced new price ceilings for animal hides and skins being sold to tanneries in the country in late April, saying that the high price being charged to factories was hindering the development of the sector.