Business Desk :
Inflation is the “cruelest tax” for marginalised people, South Asian Network on Economic Modelling (SANEM) said in a recent report.
The report titled “Do the official inflation figures in Bangladesh reflect the actual inflation faced by the marginalised households in Bangladesh?” was authored by Sanem Executive Director Dr Selim Raihan.
It said that the official figures of inflation by Bangladesh Bureau of Statistics (BBS) do not reflect the real scenarios of the stress of the marginalised households in the wake of the price hike.
The local research firm also organised a webinar in this regard on Thursday.
In January 2022, according to the BBS, the food inflation rates for the urban and rural areas were 4.85% and 5.94%, respectively. However, Sanem estimation suggested that the marginalised households in Bangladesh are facing food inflation rates that are more than two times the officially reported food inflation rates.
Point to point food inflation rate for the period Jan-2022 over Jan-2021 in the urban household groups was 11.36; according to BBS, it was 5.47. The inflation rate for the same perioid in the rural household groups was 11.21, while the rate was 6.07 according to the BBS.
Sanem marked seven factors for the recent the food price hike; these are: Supply-demand mismatch; Relative price change and additional pressure on demand; Disruption in supply chain; Non-competitive market and weak monitoring; Rise in import cost: exchange rate, shipment and logistics; Rising food prices in the world market and Rise in fuel prices
The organisation suggested conducting proper assessment of the market’s demand and supply situation and Involving all relevant stakeholders in the market monitoring.
It also suggested to expand of the social protection coverage to include the old and new vulnerable population.
