Price hike of essentials continues unabatedly

The prices of almost all kinds of daily essentials have increased significantly in October 2022 compared to the same period of the last year, resulting in immense suffering to the consumers from middle and lower income groups.

The prices of 13 groceries — rice (Irri/Boro), flour, lentil, sugar, fish (ruhi), beef, egg, soybean oil, mustard oil, garlic, ginger, potato and milk — have increased by 20 per cent on an average in October 2022, compared to the corresponding period of last year.

However, people’s wages did not increase compared to the price hike of daily essentials.

According to the data of the Bangladesh Bureau of Statistics (BBS), the general inflation rate was 8.91 per cent in October this year, but the wage has increased by 6.91 per cent point to point in the same month, compared to the corresponding period of last year.

About the matter, President of Consumer Association of Bangladesh (CAB), Golam Rahman told The Business Post, “Our country depends on import-based products. Only 4-5 companies import daily essentials from abroad. They increased the prices of commodities at their own will.”

“Businessmen are trying to get more profits from the daily commodity markets. So, the price of essentials increased in both wholesale and retail markets,” he said, adding that commodity markets of the world are in a turmoil situation at present.

He also said, “It is true that the income of a certain class of people has increased. But the income of other classes of people is decreasing, resulting in a continuously increasing inequality.”

Rahman said the Russia-Ukraine war is disrupting the supply chain. The rise in the value of the dollar has led to an increase in the prices of all types of imported goods.

According to the BBS, compared to the same period last year, the price of flour (atta) rose to Tk 55.87 per kg from Tk 41.95 per kg in October 2022, increasing by 33 per cent.

The price of coarse rice increased to Tk 57.23 from Tk 53 during the period, increasing by 8 per cent. But coarse rice is not available below Tk 60 in the market.

The price of lentils increased to Tk 135 per kg from Tk 120 per kg during the period, rising by 12.47 per cent.

Sugar increased to Tk 98.75 per kg during the period, from Tk 80.09, rising by 23.29 per cent, according to BBS, but sugar is not available in the market for less than Tk 115 per kg.

A large part of these products is imported. But the prices have increased much more in the local market than in the international market.

Meanwhile, fish and meat prices are also increasing. In October last year, a kg of beef was Tk 567 per kg which increased to Tk 718 per kg in October this year. Although beef is not imported, its price has increased by 26.61 per cent in a year.

A kg of medium-sized ruhi fish has increased to Tk 400 per kg from Tk 340 during the period, rising by 17.61 per cent.

On the other hand, the price of egg (4 pieces) increased to Tk 50 from Tk 39.40 during the period, hiking by 26.90 per cent. Ginger price increased to Tk 182.15 per kg from Tk 131.71 during the period which is up by 38.29 per cent.

The price of Soyabean oil has increased to Tk 178 per litre from Tk 142.50, rising by 24.91 per cent during the period.

The mustard oil price has increased to Tk 255.67 per litre from Tk 214.28 during the period which is up by 19.31 per cent.

During the period, potato price rose to Tk 30.62 per kg from Tk 27.44, increasing by 11.58 per cent while garlic price increased to Tk 137.54 per kg from Tk 130.42, up by 5.45 per cent.

Milk price rose to Tk 76.61 per litre in October this year from Tk 70 per litre in the corresponding period of the last year, increasing by 9.44 per cent.

Distinguished fellow of Centre for Policy Dialogue Professor Mustafizur Rahman said there is a big difference between the prices of import level and consumer level.

“Directorate of National Consumer Rights Protection and Competition Commission should increase their monitoring of whether the price of essentials increases abnormally,” he said, adding that the government agencies should be aware of the supply and stock of essentials properly, and monitor the market strongly to reduce the prices.

Rahman said the prices of all kinds of daily essentials have increased in the global market and so did the inflation rate in the country.

“The local currency has been devalued against the US dollar at this time, resulting in a price hike of daily commodities. The government should take steps to increase the income level of people through creating employment,” he added.