* Two killed, several injured in economic capital

YAOUNDE, Jan 4 (Reuters)- Cameroon security forces dispersed rioters in a neighbourhood of the economic capital Douala on Wednesday, after at least two people died during fighting triggered by the suspected murder of a local man.

Clashes began on New Year's Eve between residents of the Deido neighbourhood and motorbike taxi drivers after a man was allegedly stabbed to death by a motorcycle rider.

"We can understand that the population of Deido was shocked ... by the killing of one of theirs, but this does not mean that anybody can take the law into his or her hands," local official Barard Okalia Bilai said on state radio.

"That is why we've deployed a large number of security forces to the neighbourhood," he said, adding calm had been restored by Wednesday afternoon.

Youths from Deido had targeted motorbike taxi drivers in revenge for the alleged stabbing, and two people were killed as clashes escalated on Tuesday, local police and gendarmes told private television broadcaster Equinoxe.

Equinoxe showed images of people using clubs against each other, and security forces using water cannons to disperse the rioters, many of whom had taken to the streets again on Wednesday morning.

Other media reported that several people had been taken to hospital for injuries including fractures and burns.

Douala has a history of being a flashpoint of violence in Cameroon and was the starting point of deadly riots that spread across the country in February 2008 over high food prices and President Paul Biya's move to end term limits.

Economic activity has continued at Douala's port although barricades and heavy security presence around the Deido neighbourhood have slowed traffic down.

Reuters