The main purpose of this research is to examine the effectiveness of the Ethiopian governmentâ€™srndirect intervention through ALLE Bejimla in the market as a supplier of consumable commoditiesrnso as to control price inflation through fostering competition. .Both descriptive and case study asrnwell as quantitative and qualitative dimensions were applied as methodology of this research. Thernobjective of establishing ALLE Bejimla by the government is mainly to facilitate modern trade,rnsupply quality food and near food products at competitive prices to increase the affordability ofrngoods to consumers. The findings of the research particularly in relation to the effectiveness ofrngovernment intervention , the contribution and impacts of ALLE Bejimla on the reduction ofrninflation, the contribution of more frequent inspection and visit of retail stores for better retailrnprice , challenges of working capital of the enterprise, the impact of proximity of ALLE stores tornthe retail agents on the retail prices, and finally the impact of lack of awareness about the productrnand services of the enterprise on the bargaining capability of consumer and transparency of retailrnprice. Eventually the research recommended the need for establishing better tools of monitoringrnretail agents, the importance of awareness, how to undertake and suggest alternatives andrnadditional means of distribution at reach, propose means of resolving challenges of workingrncapital, and noted the requirement of periodically conducting impact assessment