It is very difficult on the part of an unelected government to break market syndicates to curb price hikes of essential commodities, Finance Adviser of Bangladesh’s Interim Government Dr Salehuddin Ahmed said on Monday.
“It’s difficult to control supply chains as well as inflation in Bangladesh. It is the reality that there is extortion in the supply chain process. From the farmhouse to Dhaka, there are extortions at many points. It adds to chances of price hike of the essential commodities,” he said while speaking at a book launching ceremony in Dhaka.
Dr Salehuddin said they have requested the central bank governor not to increase the policy rate further as it is affecting the investment.
The Finance Advisor said it is obvious that the GDP growth would not be high this year. But food supply would be available and hopefully, inflation would ease, he added.
However, earlier last week, Fitch Solutions warned that inflation in Bangladesh will remain persistently high despite the central bank keeping its policy rate unchanged at 10 per cent.
Fitch Solutions noted that ongoing political uncertainty will fuel inflation expectations, keeping inflation above target until June 2025.
