Local think tank Centre for Policy Dialogue (CPD) on Sunday said the actual rate of inflation or price surge in the market would be much higher than the official figures.
It said the official statistics show the rate of inflation ranges between 5.0 per cent and 6.0 per cent.
"It's a mental pain for us. Those who go to the kitchen market know well how much the prices of commodities … it cannot be hid …," said CPD economist Towfiqul Islam Khan.
If the government raises the wages of workers, the hike will be based on this 5.0-6.0 per cent, which is not the actual rate of inflation, the CPD fellow told a press briefing in the city.
His observation was drawn from an Independent Review of Bangladesh's Development (IRBD) report titled "State of the Bangladesh Economy in FY 2021-22 (third reading)", released at the event.
Presenting the keynote paper, CPD Executive Director Dr Fahmida Khatun, who is also the coordinator of the IRBD, said the think tank does not know whether the Bangladesh Bureau of Statistics (BBS) would release the actual inflation data.
"We don't have any idea whether they would apologise for such misinformation given to the people, and take action for publishing accurate inflation data."
In the meantime, she said, the inflationary pressure will hamper a sustainable and inclusive pandemic recovery since the real purchasing power of many people will decline, causing further inequality.
Dr. Khatun said Bangladesh's economy is under pressure in view of the challenges emerging due to both external and internal factors, and suggested taking immediate and medium-term proactive measures by the policymakers to overcome the difficulties.
Coordination between the monetary and fiscal policies is needed, particularly in view of the upcoming budget for FY 2022-23 to keep the commodity prices under control, she added.
She said the policymakers will have to come out of growth obsession and focus on the quality of growth in terms of distribution of the benefits of growth more equally.
The CPD suggested that a new consumption basket should be formulated for calculating CPI inflation based on rigorous research about consumer behaviour and expenditure patterns.
It said all targets, projections, and plans in the monetary policy and the 8th Five Year Plan should be revised in accordance with this new consumption basket and new base-year for inflation.
It also noted that in view of the soaring inflation, the National Board of Revenue (NBR) should immediately consider removing the advance income tax (AIT), advance tax (AT) and regulatory duty (RD) on all imported essential food items.
The CPD said the role of the Bangladesh Competition Commission needed to be strengthened, particularly in the case of the essential consumer goods market, so that none can cash in on the soaring prices of commodities in the international market.
The Minimum Wage Board should consider increasing the minimum wages in all industries so that the workers having minimum income could at least afford the basic foods, it recommended.
It said the private sector corporations should consider a higher salary increment in 2022, given that a 5.0 per cent increment of salary in the face of a double digit price hike is compelling workers to seriously compromise their standard of living.
The quantity of essential commodities that go through the open market sale (OMS) should be increased substantially, it said, adding that the government should provide direct cash support to the poor, enhance social protection for low-income families, and extend stimulus to the small businesses.
CPD distinguished fellow Dr. Mustafizur Rahman and its director research Dr. Khondker Golam Moazzem, among others, attended the meeting held through the hybrid system.
jasimharoon@yahoo.com