No respite from soaring food prices

People are not getting any respite from their sufferings resulted by soaring prices of essential commodities, including rice, flour, edible oil, meat and sugar, despite having surplus production and adequate import of the items.

It is not only the low-income people who are struggling with the spiraling food prices. People from the middle class are also limiting their protein intake to cope with the situation. As more and more people are compromising with the quality of food they are eating, they are bound to suffer from lack of nutrition and other health issues as a consequence.

Although the government has repeatedly claimed a surplus production of rice and a sufficient output of onion in the country, the prices of these commodities remain abnormally high.

It is really worrying how the rising prices of essential food items have continued to afflict ordinary people over the last few months.

A report published in The Business Post yesterday reveals that the price of key essential commodities rose significantly in the August-October period this year, despite government data showing a decline in food inflation during this three-month period.

The price pressure of market commodities appears to be higher than the Bangladesh Bureau of Statistics (BBS) figures. This discrepancy must be addressed by the authorities concerned

Consumers Association of Bangladesh (CAB) President Golam Rahman said he has a suspicion that the government’s calculation methods about inflation are incorrect. He does not think the government statistics reflect the market reality experienced by the low and middle income segments of the population.

According to the latest BBS data, Bangladesh’s inflation rate has been declining in the last three months. The country’s average inflation rate was the record highest 9.52 per cent at the end of August 2022, while the food inflation was 9.94 per cent.

Inflation rate later dropped to 9.10 per cent, while food inflation to 9.08 per cent in September. At the end of October, BBS posted 8.91 per cent average inflation rate, and 8.50 percent food inflation rate.

CAB data shows that the average price of fine rice was Tk 123.33 per kg in August, but it rose by 10.29 per cent to Tk 125 per kg in October. The price of coarse rice was at Tk 57.5 per kg in August, which rose by 2 per cent to Tk 58.66 per kg in October.

The price of medium grade rice was Tk78.5 per kg in August, and it rose by 1.27 per cent to Tk 79.5 per kg in October.

In August the average price of wheat flour was Tk52.5 per kg, which increased by 12.86 per cent to Tk 59.25 per kg in October. The price of flour rose by 4.74 per cent to Tk 71.75 from Tk 68.5 per kg.

The price of sugar increased the most by 37.50 per cent during this time. Sugar was being sold at Tk 80 per kg in August, but rates increased to Tk 110 per kg in October.

According to market insiders, the price of different variants of rice slightly dropped in the wholesale market but that drop did not reflect in retail prices on the day.

Though the Covid-19 pandemic is getting normal, the uncontrolled commodity prices are making the daily life of the poor and fixed-income people well-nigh unbearable.

Regarding the exorbitant prices of daily commodities, there was a problem in the government data about the production of and the demand for the items.

True, the prices have increased on the global market but the greed of local traders is also a reason for rising prices on the kitchen market.

Inflationary pressure always has an adverse impact on the consumers through reduction of their purchasing power and income erosion. High inflation, particularly high food inflation, affects the poor and people in the fixed income group. They are continuing to feel the pinch of the abnormal diesel price hike in November 2021.

Now, with the continuous price hike of essential commodities, they are finding it increasingly difficult to lead a decent life.