Muhid Hasan :
The average monthly food prices in Bangladesh have continued to rise in 2024, with food inflation remaining in double digits for nine consecutive months since April last year.
According to data from the Bangladesh Bureau of Statistics (BBS), food inflation was contained within single digits during the first three months of the previous year, with increases of 9.56 percent, 9.4 percent, and 9.87 percent, respectively.
However, from April onwards, food inflation saw a significant increase, reaching 10.22 percent, and remained unfavourable to consumers. By the end of June, it had risen to 10.42 percent, and in July, it crossed the 14 percent mark for the first time in 13 years.
In November of the just-ended year, food inflation increased to 13.80 percent, up from 12.66 percent in October. Similarly, in December, food inflation stood at 12.92 percent.
Overall inflation in the country has remained above 9 percent since March 2023, with the price hikes largely driven by food inflation in both urban and rural markets. Non-food inflation also rose, though at a much slower rate than food inflation.
Experts argue that food inflation has been steadily increasing since May 2022, largely due to inadequate monetary and fiscal policies and market manipulation, which have worsened the situation.
Additionally, the Taka has lost more than 12 percent of its value against the US dollar in 2024, further contributing to the rise in imported food prices.
Globally, food commodity prices declined by 2.1 percent in 2024 compared to the previous year, according to the latest report from the United Nations Food and Agriculture Organization (FAO). Despite this, inflationary pressures continue to be a major concern for the common people in Bangladesh.
The Bangladesh Bank (BB) has raised the policy rate 11 times since May 2022 to make borrowing more expensive in an attempt to curb inflation. Nevertheless, the persistent increase in commodity prices remains a constant challenge.
Moreover, monthly wage growth for working-class people in Bangladesh has consistently fallen below the overall inflation rate for the past 35 months, since February 2022, highlighting the financial distress workers are facing as they reduce consumption to cope with rising prices.
Veteran economist Professor Dr. Muinul Islam told The New Nation that the BBS inflation statistics do not reflect the reality, as data manipulations have been evident under the Hasina regime. The true impact of rising prices for essential goods has been downplayed, leading to artificially low food inflation figures in the past.
The Ekushey Padak award-winning economist urged the interim government to implement effective, real-time measures to ease the inflationary pressures, including dismantling market syndicates.
