Chief Adviser Prof Muhammad Yunus yesterday admitted that the interim government has not yet been able to control inflation but expressed his belief that it would come down soon.

Addressing the nation marking the Victory Day, Yunus said the government was working earnestly to control inflation.

Inflation hit a four-month high of 11.38 percent in November this year. It has stayed at over 9 percent since March of last year.

The government and the Bangladesh Bank have been trying to control the inflation by introducing various measures, including hiking the policy rate.

The policy rate is an interest rate that a country's monetary authority, meaning the central bank, sets in order to influence the main monetary variables in the economy, such as consumer prices, exchange rates and credit expansion.

After the interim government came to office, the central bank hiked the policy rate several times, effectively turning loans costlier to curb spending and thereby tackle the inflationary pressure.

The government has set a target to reduce inflation to 7 percent by the end of next June and below 5 percent in the next fiscal year, said Bangladesh Bank Governor Ahsan H Mansur recently.

The prices of some goods have risen in recent months, but the government is trying to increase supply, reduce import duties, curb the influence of middlemen and monitor the market, said Yunus yesterday.

Extortion in the transportation sector has not yet been completely stopped. "If it can be put to an end, we hope prices will decrease further," he pointed out.

"We empathise with your hardships. However, we know that the government's job is not just to express sympathy. We are making every effort to alleviate your suffering," he said.

The government is also seeking everyone's cooperation to keep commodity prices at a reasonable level during upcoming Ramadan, said Yunus.

"We have already spoken with traders, who have assured us that there will be no supply shortages in the market. If anyone tries to create an artificial crisis for extra profit, we will take strict action against them," he said.

The government is working to establish an alternative agricultural market to curb the influence of market syndicates, he said.

Regarding the country's economy and businesses, the chief adviser said export earnings stood at $4.12 billion in November, which was 15.63 percent higher than that in the previous month.

He informed that overall exports amounted to $16.11 billion during the July-November period of this year, which was at $14.34 billion in the same period last year.

Foreign currency reserves have climbed to $19 billion and these show that the economy is beginning to recover, and the situation is improving, said Yunus.

Regarding wages of garment workers, Yunus said that they were the backbone of Bangladesh's economy and would see a 9 percent increase in their annual wages from next month.

This decision was taken considering inflation and through discussions with labour unions and employers, he added.

"We inherited a devastated economy from the previous fascist government, with our foreign reserves hitting rock bottom," he said.

"Beyond organising and reforming elections, you have entrusted us with numerous responsibilities, including economic recovery and improving people's living standards," he added.