Fight against inflation just not an economic battle

Dr Matiur Rahman :

Rahim, a 45-year-old labourer in Dhaka, is the sole breadwinner for his family of five.

With the recent surge in food prices, Rahim finds it increasingly difficult to put food on the table.

A few years ago, he could afford to buy rice, egg, onion, garlic, potato, lentils, vegetables, and cooking oil without much strain on his budget.

However, the rising prices have forced him to cut down on the quantity and quality of food he provides to his family.

“Before, I could buy a kilogram of rice for 50 Taka, but now it costs me 60 Taka.

The price of vegetables has doubled, and cooking oil is a luxury we can no longer afford,” Rahim laments.

Rahim’s story is a reflection of the challenges faced by countless low-income families in Bangladesh, as they grapple with the harsh realities of inflation.

Nasrin, a 27-year-old garment worker in Gazipur, is part of the backbone of Bangladesh’s economy.

She works long hours in a clothing factory to support her family.

However, the relentless price hikes have eroded her purchasing power, making it difficult for her to meet her basic needs.

“I used to send money home to my parents and save a bit for my future,” says Nasrin. “But now, with the rising cost of living, I can barely make ends meet.

Saving for the future seems like an impossible dream.”

Nasrin’s story underscores how inflation not only affects consumers but also the livelihoods of those working in key industries like the garment sector.

The rising prices of essential commodities have become a pressing issue in Bangladesh, causing widespread concern among its citizens.

This phenomenon, commonly referred to as inflation, affects people’s daily lives, impacting their purchasing power and overall standard of living.

Inflation is the persistent increase in the general price level of goods and services over time.

It is measured by the Consumer Price Index (CPI) and can have various causes, including increased demand, supply disruptions, currency devaluation, and government policies.

In Bangladesh, the current price hike is a multifaceted issue driven by both domestic and international factors.

One of the primary domestic factors contributing to inflation in Bangladesh is the rising production and distribution costs.

This is particularly evident in the agricultural sector, where farmers face challenges related to increasing input costs, such as fertilizers, pesticides, and labour.

The inefficiencies in the supply chain also lead to post-harvest losses, further driving up prices.

Moreover, inadequate infrastructure, such as transportation and storage facilities, exacerbates the problem.

These issues not only affect agricultural products but also impact the availability and pricing of other essential goods like fuel, electricity, and transportation services.

Bangladesh’s economy is heavily reliant on imports for many essential commodities, including fuel, edible oils, and raw materials for the textile industry.

International price fluctuations and geopolitical tensions can disrupt the supply chain, causing sudden price surges in these items.

The devaluation of the Bangladeshi Taka against major currencies can also contribute to inflation, as it makes imports more expensive.

However, ordinary people in Bangladesh believe that business syndicates play a critical role in the rising prices of daily commodities.

Syndicate business refers to the collusion and manipulation of market forces by a group of individuals or organizations to control the supply and prices of goods or services.

In Bangladesh, syndicate operations have a long history and have infiltrated various sectors, including agriculture, transportation, and construction.

Syndicate groups have been accused of hoarding daily essentials stocks to artificially inflate prices, thereby profiting at the expense of the common people.

These practices have contributed to the current price hike, making it difficult for many Bangladeshis to afford their daily meals.

The people of Bangladesh are increasingly aware of the role syndicate businesses play in driving up prices.

Citizens have noticed that despite an adequate supply of essential commodities, prices continue to rise.

This has led many to believe that syndicates are manipulating the market to create artificial shortages and drive up prices.

The perception of syndicate influence is further exacerbated by the perceived inaction of the government in curbing these illegal practices.

Many people believe that the authorities turn a blind eye to syndicates, which emboldens them to continue their operations.

Extensive media coverage of syndicate activities has brought the issue to the forefront of public consciousness.

Reports of raids on warehouses filled with hoarded goods and testimonies from affected citizens have solidified the belief that syndicates are responsible for the price hike.

The Bangladesh government has introduced various measures to mitigate the impact of inflation, including subsidies on essential commodities and measures to stabilize the currency.

Civil society organizations, such as consumer rights groups and trade unions, have been vocal in their criticism of the price hike.

They call for increased transparency in the distribution of subsidies, better regulation of markets, and efforts to improve the efficiency of supply chains.

These organizations play a crucial role in advocating for the interests of the common people and holding the government accountable for its actions.

The current price hike in Bangladesh is a complex issue that affects people from all walks of life. It is driven by a combination of domestic and international factors, making it a challenging problem to solve.

While the government has taken steps to alleviate the burden on its citizens, there is a growing perception that more needs to be done to address the root causes of inflation.

Transparency in subsidy distribution, market regulation, and supply chain improvements are among the measures advocated by civil society organizations.

In the end, policymakers need to listen to the voices of the people and work towards long-term solutions that ensure a stable and affordable cost of living for all Bangladeshis.

The fight against inflation is not just an economic battle but a social and humanitarian one, with the well-being of millions at stake.

(The writer is a researcher and
development worker).