Accurate data key to policymaking
Finance Minister Amir Khosru Mahmud Chowdhury has rejected allegations that the latest inflation figures were manipulated, saying the decline in inflation in July was primarily driven by lower prices of rice and meat.
“This government will by no means distort information. Rather, we want to re-examine past statistical errors or misleading data presented to the public and work based on accurate facts,” he said.
“Having correct data is crucial for the government, as policy will be formulated based on those numbers,” he added.
The minister made the remarks in response to reporters’ questions about the latest inflation figures and public scepticism over the data at the closing ceremony of a three-day conference on the Sustainable Development Goals (SDGs) at the Bangladesh-China Friendship Conference Centre in Dhaka.
The Bangladesh Bureau of Statistics (BBS) reported on August 11 that inflation fell to 8.32 per cent in July, its lowest level in eight months. The figure has nevertheless drawn questions over its accuracy, prompting the government to defend the methodology behind the calculation.
Khosru said the government had verified the decline in rice and meat prices, as well as the format and methodology used to calculate the newly released inflation figures. Authorities were also examining other factors that contributed to the fall, he said.
State Minister for Planning Zonayed Abdur Rahim Saki, speaking at the same event, said the government would hold a detailed briefing for journalists on how inflation is calculated.
“The entire process will be presented to you, along with the government’s role in ensuring data reliability,” Saki said.
Beyond the inflation debate, Saki said Bangladesh faces an investment deficit of more than $421 billion, equivalent to Tk50 lakh crore, to achieve its SDGs.
The finance minister said the government was also exploring alternative sources of financing, including opportunities in the creative economy. He said artisans producing local goods such as pottery would receive support in design, branding and marketing to help them reach global platforms such as Amazon and Alibaba.
Addressing the broader financing gap, Khosru said traditional public financing alone would not be sufficient.
“The global public finance architecture is evolving, which is why we are pursuing alternative financing. Foreign fund managers are entering the capital market, and various financial instruments, including bonds, have been introduced to help bridge the gap,” he said.
He added that the government was working to raise the country’s debt-to-GDP ratio to secure the financing required for development.
The government’s defence of the latest inflation figures comes amid wider concerns over the reliability of official economic data. Khosru said accurate statistics were essential for sound policymaking, while the planned briefing on the inflation methodology is expected to provide greater clarity on how the latest figures were produced.
