Mozambique is to reverse an increase in the price of bread that sparked fatal riots last week.
Planning minister Aiuba Cuereneia also said some subsidies for electricity and water would be restored.
A jump in the price of bread and other goods sparked three days of protests, which left 13 people dead.
The minister said the government would "maintain the previous price of bread through the introduction of a subsidy."
The BBC reports the government previously called the price rises "irreversible". Mozambique grows only 30% of the wheat it needs.
Analysts say the rises were partly caused by a decline in the value of the Mozambican currency against the South African rand, which makes imports more expensive.
On top of that, wheat prices have risen in value following a drought and wildfires in Russia, one of the world's main exporters.
