Consumers Association of Bangladesh (CAB) has questioned the accuracy of inflation data provided by the Bangladesh Bureau of Statistics (BBS).
CAB President Ghulam Rahman questioned the official inflation rate of 9.02 per cent in the last fiscal year (FY2022-23) based on BBS data, stating that the prices of essential commodities seemed to have increased more than the reported inflation rate when reviewing the rates provided by the Trading Corporation of Bangladesh (TCB).
Ghulam Rahman claimed that the market volatility and the skyrocketing prices of essentials were largely due to the syndication of a few companies under the guise of an open market economy.
The CAB also called for establishing a separate ministry on consumers' affairs, food, and public distribution to safeguard the rights and interests of consumers.
These concerns were expressed during a press conference titled "Fire on Market," organised by CAB at the National Press Club.
Alongside Ghulam Rahman, CAB General Secretary Humayun Kabir Bhuiyan, Vice President Prof Dr M Shamsul Alam, and Dhaka District CAB President Brig Gen (retd) M Shams Khan also spoke at the event.
Ghulam Rahman pointed out that despite no apparent supply shortage in the market, the prices of daily necessities, both domestically produced and imported, were increasing rapidly.
This price surge has made it difficult for the common people to afford essential products, leading many to deplete their savings and take loans to meet their basic needs. As a result, the quality of life for ordinary citizens has been negatively affected.
The inflation target for the last fiscal year was initially set at 5.6 per cent, but it was later revised to 7.5 per cent. However, the BBS reported an inflation rate of 9.02 per cent for FY23, the highest in recent times.
Many people feel that the inflationary pressures faced by the general public are not accurately reflected in the BBS data.
The recent price increases can be attributed to factors such as the ongoing Russia-Ukraine war, excessive government borrowing from banks, including the Bangladesh Bank, which has led to an increase in money supply and subsequently fuelled inflation.
Additionally, the dollar crisis has disrupted imports, supply chains, and contributed to rising prices, according to business leaders.
Ghulam Rahman emphasised that the explanations regarding the demand-supply gap, international market prices, and increased currency supply are irrelevant to the common man who is directly affected by inflation. The abnormal rise in prices has been attributed to the government's failure, and consumers believe that they are suffering the consequences while their quality of life deteriorates.
He highlighted how a lack of competition in the market enables certain companies to manipulate prices and supplies, resulting in abnormal profits.
Syndicates control the availability of essential commodities such as edible oil, sugar, onion, ginger, eggs, and green chilies, effectively draining significant amounts of money from consumers' pockets, he said.
CAB's senior vice-president and energy advisor, Prof Dr M Shamsul Alam, advocated for the establishment of a separate ministry dedicated to protecting consumer interests. He argued that the Ministry of Commerce, primarily focused on trade, might not adequately represent the interests of consumers, making a distinct ministry necessary.
Humayun Kabir Bhuiyan, the general secretary of CAB, expressed concerns about consumers being exploited under a free-market economy. He said six to seven companies manipulate prices at their own discretion, creating artificial crises in the market. Bhuiyan cited recent examples such as increased prices of green chilies, potatoes, eggs, sugar, and oil, and emphasized the adverse impact on consumers.
Former Director General of the National Consumer Protection Directorate and CAB member, Md Abul Hossain Mia, urged consumers to be aware and proactive in lodging complaints, alongside government agencies.
