Bangladesh is currently facing a difficult economic reality. While the government has stated its goal of reducing inflation in the current fiscal year, the reality is quite different.
According to data from the Bangladesh Bureau of Statistics (BBS), the country’s overall inflation rose to 8.36 percent in September, the highest among South Asian countries. However, inflation in India is 2.7 percent, Sri Lanka 1.5 percent, and Nepal 1.68 percent.
This comparison clearly reveals the weakness of our policies and implementation. A product that could be purchased for 100 taka in September 2024 now costs 108 taka. The prices of daily necessities like rice, pulses, eggs, onions or chicken have reached such a level that it is now an uphill battle for the lower and middle class to survive. Economists see inflation as an ‘invisible tax’.
Even though the prices of goods have increased, this high rate has not increased people’s income, effectively forcing general people to take out loans to meet living expenses or cut back on basic needs-such as food, medical care, and transportation. The BBS report further says that this pressure is higher in rural areas than in urban areas, which has placed an additional burden on the rural economy.
Experts believe that the root causes of this unbridled price increase are fuel prices, import dependence, weak market supervision, and inefficiency in the supply system. The picture of rice prices that consumers are seeing in the market is not fully reflected in government statistics. According to Dr. Mustafa K. Mujeri, former chief economist of Bangladesh Bank, unless inflation in the food sector is brought under control, people’s suffering will not be reduced.
Strict and coordinated measures are necessary to overcome this situation. Monopolies at the wholesale level must be broken by establishing effective market surveillance systems like those in India and Sri Lanka. In addition, it is essential to strengthen direct marketing channels for agricultural products, reduce tariffs on food imports, and ensure proper implementation of a tight monetary policy. Transparency and accountability must be restored in market management.
Controlling inflation is not just a matter of monetary policy, it is also a test of political will and administrative skills. If the government understands the real situation and focuses on effective supervision, expansion of agricultural production, and social security programs, possibly some relief can be achieved. Otherwise, the suffering of the common people will only be prolonged.
