Angola to introduce new competition law on prices

LUANDA (Reuters) - Angola plans to ramp up its campaign to rein in inflation by introducing a new competition law next year to stop companies from manipulating prices, Economy Minister Manuel Nunes Junior said on Friday.

Nunes Junior said competition in the Angolan market was "not the most adequate" and his government also planned to bolster measures to supervise consumer prices.

"It is possible to guarantee fair prices through tighter supervision of companies which abuse the power they hold in the market," Nunes Junior said. "The government should ensure that consumers are protected."

There has been growing criticism in the southern African state of a small group of companies that control the flow of imports in commodities ranging from cement to basic food staples such as rice and wheat.

Angola was a major food exporter before a 1975-2002 civil war led to a mass exodus of farmers to the main cities. The few farmers that stayed behind mostly rely on subsistence level agriculture for a living.

The oil-producing nation's dependence on imports has helped turn the capital city Luanda into the world's most expensive city for foreigners, according to a survey by London-based human resources firm ECA International.

With an estimated two thirds of the population living on less than $2 a day, President Jose Eduardo dos Santos last month called on his government to do more to reverse the upward trend in prices.

Year-on-year inflation in Angola declined to 13.55 percent in October, the lowest rate since February, but consumer prices still remain above the government target of 12.5 percent for the year.

Angola rivals Nigeria as Africa's biggest oil producer.