Hardship persists for households as food prices keep rising

Amid soaring prices of food, products and services, inflation in Bangladesh fell to 5.86 per cent in January, the first decline in six months, official data showed yesterday.

The 19-basis-point decline from 6.05 per cent in December came on the back of a fall in non-food inflation, down 74 basis points at 6.26 per cent in the first month of 2022, according to the Bangladesh Bureau of Statistics (BBS).

The non-food inflation had touched a six-year high of 7 per cent in December, largely because of the impacts of the hike of diesel and kerosene prices in November.

Economists and consumers rights activists, however, were alike sceptical.

"The credibility of inflation data is now facing questions," said Towfiqul Islam Khan, a senior research fellow of the Centre for Policy Dialogue.

"Because it is not capturing the ground reality, particularly, the struggle of the general people."

He said the massive drop in non-food inflation didn't reflect the hike in diesel price, which increased the cost of transportation and other products.

Food inflation rose to 5.6 per cent last month, an increase of 14 basis points from 5.46 per cent a month ago, hurting the low-income groups and the poor, who spend a majority of their incomes on food.

This is because the prices of most of the items such as rice, wheat, pulses, sugar, fish, beef, mutton, egg, edible oil and milk rose in January compared to a month ago, BBS data showed.

Between 2020 and 2022, the price of coarse and fine Boro rice has increased to Tk 45 and Tk 65 respectively, from Tk 34 and Tk 54. The price of flour has risen by Tk 10 per kilogramme to Tk 43.

The average prices of pumpkin, cauliflower, cabbage, papaya, green bean, gourd, cucumber, brinjal, radish, carrot, tomato and pea have risen by about 60 per cent from the prices mentioned by the state-run Department of Agriculture Marketing in 2019, an analysis of the prices at several kitchen markets in the capital found last week.

In Bangladesh, food inflation has been at a higher level for the elevated commodity prices globally, fueled by supply constraints, pent-up demand and unprecedented shipping costs.

General inflation in rural areas fell from 6.27 per cent in December to 6.07 per cent in January. Urban inflation was down at 5.47 per cent from 5.66 per cent a month ago, according to the BBS.

Ghulam Rahman, chairman of the Consumers Association of Bangladesh, said there was no coherence between the data of the BBS and the experience of consumers.

"The absence of this coherence has tarnished the credibility of BBS data. People no longer believe it," he told The Daily Star, adding that there should be a cost of living index.

Although the BBS data showed that non-food inflation witnessed a massive drop, consumers paint a different picture.

While his workplace is located in the capital's Karwan Bazar, Alif Ahmed rented a small flat in the capital's Basila to save some money as the housing cost is moderate there compared to other areas in Dhaka.

"But, bus conductors are now charging more in fares than those set by the government. Since the diesel price was hiked three months ago, my transportation cost has gone up by more than 50 per cent, undermining all of my efforts aimed at reducing expenses."

Rubbing salt into his wounds, Ahmed's landlord has informed him that he was going to hike the rent since the price of everything has gone up.

 "I would be in further trouble if the government hikes the price of electricity, gas and water," Ahmed added, referring to the proposals of a number of state-run utility service providers to raise prices.