Regulate the market system rigorously

For several years, the prices of goods have been rising uncontrollably in almost every country. Under the pressure of inflation, people in various countries, especially in poorer ones, are now bewildered. Moreover, the official inflation figures reported in different countries are believed to be even higher in reality. The question is, where will this ongoing inflation lead? Will commodity prices continue to rise? Historically, when inflation exceeds 9 percent, it may take several years for it to stabilize. Bangladesh seems to be heading in that direction, which is very concerning.

Although there's hope that inflation will decrease alongside various measures taken by the Bangladesh Bank and the government, the reality is that inflation persists. Efforts have been made, but inflation isn't decreasing in any significant way. The overall inflation rate remains in the double digits. Even though food inflation crossed the double-digit mark earlier, it continues to put pressure on people's purchasing power. Those with limited incomes are finding it increasingly challenging to manage household expenses.

Inflation in the country is soaring. For the past 14 months, inflation has been above 9 percent. Recently (on June 4th), the government institution Bangladesh Bureau of Statistics (BBS) released the latest inflation figures. It shows that in May, inflation stood at 9.89 percent, compared to 9.74 percent in April.

Amidst the Ukrainian war and the aftermath of COVID-19, the government is caught in a confusing situation regarding the dollar crisis. It's anticipated that in the upcoming budget, the government, in an attempt to bring balance to revenue and expenditure, may face increased pressure on inflation rates due to the rising prices of goods and services. This will further burden those with low incomes.

On one side, there's intense heat, while on the other, there's an electricity crisis. Additionally, the market is also volatile, posing a threat. In such a scenario, those with limited incomes are struggling to manage their expenses. In this situation, economists have recommended giving top priority to controlling inflation in the upcoming budget year.

While the government often attributes the rise in inflation to increases in prices of goods in the international market, over the past few months, prices of various essential commodities have been decreasing in the global market. However, this impact is not very visible in the Bangladeshi market. The reason is that in Bangladesh, the prices of most goods are not synchronized with the international market. Although the importers mainly blame the dollar crisis and the strictness on the opening of import LCs.

Throughout the last fiscal year, the majority of the time witnessed outcry from consumers in the country's market. In this scenario, if the prices of essential commodities cannot be reduced, how will the ordinary people, already struggling due to the crisis, manage the burden of increased expenses? So, the government needs to find solutions to tackle the increasing inflation, the crisis in the labor market, and the limited scope of social assistance programs. In this regard, if there is irregularity in the market, it must be strictly regulated.