AL’s inflation promises fall flat as price hike in Ramadan continues
Abu Jakir :
Despite the Awami League’s election manifesto promises to control inflation and rein in the prices of essential commodities, the government has failed to deliver on its commitment.
As a result, citizens are grappling with the brunt of abnormal price hikes, particularly during the holy month of Ramadan.
Awami League spokesperson and general secretary, Obaidul Quader, defended the government’s efforts, saying that they have taken various steps to control the soaring prices of essential commodities.
Quader asserted, “The government has not shown any negligence in its task to control price hikes of essentials.
Our government has taken different steps to do so. It is not that we are sitting idle while the price is rising. Surely, we are taking actions, but it will take time to bring the situation under control.”
However, the ground reality contradicts these assurances, as the prices of daily essentials continue to rise, causing distress among the population.
Despite the Bangladesh Bank’s implementation of contractionary monetary policies to curb inflation, the effectiveness of these measures remains questionable.
The tightening monetary policy, intended to control inflation, has inadvertently led to a monthly increase in interest rates.
This rise in interest rates is impacting businesses, increasing costs, and resulting in investment losses, creating an adverse effect on the overall workplace environment.
Business owners are expressing concerns that the surge in interest rates is exerting additional pressure on the economy.
From July of the current fiscal year to February, the month-to-month inflation rate has surpassed the government’s target of 8 percent, making it evident that achieving this goal is increasingly challenging.
Market experts predict that commodity prices are likely to rise even further in March, exceeding the previous month’s inflation rate.
Experts argue that addressing inflation requires a multifaceted approach, involving factors such as market management and supply chain considerations.
In the prevailing economic conditions, conventional economic rules seem insufficient, and monetary policy alone may not be enough to control inflation.
The surge in interest rates to reduce inflation comes with its challenges, as it may reach as high as 12 to 13 percent. Engaging in business with a 17 to 18 percent interest rate is deemed unsustainable by many.
Despite the government’s promises to control inflation before the upcoming national parliamentary elections, there is little evidence of any significant impact on the market.
Prices of essential items, including sugar, cooking oil, and dates, were expected to decrease in the run-up to Ramadan, but these promises remain unfulfilled.
Besides, imposing regulatory duties on foreign fruits has led to a higher cost compared to the previous year, dissuading many from purchasing fruits.
Prices of various commodities, including beverages, potable water, and even eggplants, have surged in recent days, further straining consumers.
As the holy month of Ramadan approaches, concerns are mounting about the potential for increased inflation.
Economists emphasize that swift action is necessary to control the situation, as prolonged inflation can have lasting effects.
The anticipation of a ‘listless iftar market’ during Ramadan underscores the significant rise in prices for various daily products, raising uncertainties about the extent of this inflationary trend and concerns about the affordability of essential items for consumers.