A whole series of measures to curb inflation soon

Staff Correspondent

Fri Nov 8 2024 09:17 Last update: Fri Nov 8 2024 09:52 am

Ahsan H Mansur. File photo

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Ahsan H Mansur. File photo

The interim government has decided to double the quantity of rice against one crore family cards and change the market monitoring strategy to curb inflation.

The decision came yesterday at a meeting attended by Finance and Trade Advisor Salehuddin Ahmed; Planning and Education Advisor Wahiduddin Mahmud; Energy, Power and Mineral Resources Advisor Muhammad Fouzul Kabir Khan; and Bangladesh Bank Governor Ahsan H Mansur at the Secretariat.

Given the global market situation and domestic measures, inflation will decline, Mansur told reporters after the meeting at the secretariat.

“However, this may take some time. It typically takes twelve to eighteen months for the step taken to tighten monetary policy to have an effect on controlling inflation. We must be patient and will implement the policy with patience,” he said.

During the meeting, it was decided that each family ticket holder would receive 10 kilograms of rice instead of 5 kg, Finance Minister Khairuzzaman Mozumder said.

Moreover, the number of family cardholders and beneficiaries of open market sales (OMS) will also increase, he said.

It has been decided to withdraw the margin for opening letters of credit for import of six to seven essential food items, Mansur said, adding that the notification in this regard would be issued on Sunday.

Also, the limit on importing essential items will be relaxed for at least two to three months ahead of Ramadan to ensure smooth supply.

The import price and selling price of the goods in the domestic market will be monitored, he said, adding that the markets will not be vigorously monitored as it could have adverse effects.

Mansur identified three reasons behind the rise in inflation: the recent floods, wage increases for workers and the base effect.

The government has been releasing inflation figures uncontrollably since July.

“Now, the Bangladesh Bureau of Statistics releases data freely. When data is released freely, there may be some percentage changes, which is known as the base effect,” he said.

Due to this effect, inflation may remain high in the coming months, which is known as a statistical artifact, Mansur said.

“The good news is that the prices of goods on the international market are falling. Moreover, the government has taken several measures. So inflation will certainly fall.”

For example, although the price of rice is high, it is not as high as last year, Mansur said.

This time last year, the price of rice was Tk 5 to Tk 6 more for a kilogram.

Moreover, the price of rice in the local market is lower than in the international market. As a result, importers do not import rice, despite zero duty on the staple food.