Think-tank CPD suggests Bangladesh govt to focus on taming inflation

25 Mar '22

2 min read

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Dhaka-based think-tank Centre for Policy Dialogue (CPD) recently suggested Bangladesh government to pay immediate attention to curbing inflation as people are hit with skyrocketing prices of essentials. the struggle of the poor and low-income groups, which had begun with the COVID-19 outbreak in early 2020, further worsened amid unabated rise in prices of commodities, it noted.

In a report under its Independent Review of Bangladesh's Development (IRBD), the think-tank said the inflationary pressure will not only hamper a sustainable and inclusive pandemic recovery, but also raise inequality further as the real purchasing power of many people will decline.

Presenting the report, titled 'Skyrocketing Prices Amid Stable Inflation?', CPD executive director Fahmida Khatun said there is a tendency to blame external factors for high prices, even if certain commodities do not have any connection with the global demand.

Food inflation appears to be hovering around the 5.3-per cent mark during the October 21-January 22 period, which is not reflecting the ground realities.

"The sufferings of common people are undermined by the official inflation statistics," she said.

Terming increasing price of Brent crude oil on the world market a concern for Bangladesh, she noted that this is worrisome as the share of Brent oil in the global trading of crude oil is more than 50 per cent.

"Therefore, the government will have to prepare to face such price hike strategically—without any delay. Bangladesh should make advance purchases to reduce the pressure of high prices," she added.

The CPD also recommended increasing the quantity of essential commodities sold under the open-market sale programme.

ALCHEMPro News Desk (DS)

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