Inflation must be controlled

Published : 28 Feb 2024 08:17 PM

According to a data from Consumer Price Index of the Bangladesh Bureau of Statistics (BBS) that shows that it rose to 9.86% in January from 9.41% in December last year. In BBS’s latest report, Bangladesh’s gross domestic product (GDP) slowed down to 5.78% in the last financial year, the slowest growth in 13 years.

Inflation is the main bugbear to economy and Bangladesh has been experiencing high inflation for over a year. With the high inflation in January last year, the pressure of inflation has increased in January this year, according to media reports. 

So, the authorities concerned should strengthen the market monitoring system to control inflation especially the uptrend of price of essentials in the country. Everything has gone out of people’s purchasing capacity in the country. Authorities concerned must attach the topmost priority on controlling the inflation rate in the country against the backdrop of the impact of Covid-19 pandemic coupled with the Russia-Ukraine and Gaza-Israel war and disruption of supply chain. 

High inflation is a bad thing and it is not possible on the part of Bangladesh alone to tackle inflation which has become almost ubiquitous all the world over. 

Bangladesh has been

 experiencing high 

inflation for over a year

But it is now urgently needed to take stronger measures to bring down the prices of essentials to a tolerable level in the country. It is a good sign that as part of the measures, the government has already discouraged the import of luxury goods which are not very essential. 

So, dependency on imported goods is being reduced while consumption of local products and services is increasing significantly. Agriculture should also be recognised as the priority sector because of its importance in ensuring food security. 

Too much dependency on funding from development partners will ultimately go against the interest of the country. Yet, maintaining imports at a reasonable volume and keeping foreign reserves stable is now a great challenge due mainly to a stress on the exchange rate originating from the increased demand for US dollar in the local market.

When times are tough, the government will also have to take decisions that are stringent too. Market can be controlled through executive steps and policy steps while the government will have also to undertake some steps like withdrawing VAT on some essential items alongside reducing the import duty.

The authorities concerned must strengthen the market monitoring system alongside regular drives. We hope the government should take an effective step to bring down prices of daily essentials to

keep them at a tolerable level and control the inflation as well.