Living cost in city up by 6.82pc in 2014: CAB

Dhaka city witnessed a 6.82 per cent increase in the living cost in 2014 compared to that of 2013 with a significant rise in house rent, according to an annual report released by the Consumers' Association of Bangladesh (CAB).

The cost of living has been calculated on the basis of the 'weight' of products and services available in consumers' basket, said the report released on Wednesday.
However, education, medicare and real transportation costs were out of the CAB calculation, said the report.
The CAB has prepared the report on the basis of information on 114 food products and 22 essentials gathered from 15 different markets in the city and 14 categories of services.
House rent, prices of a few spices including ginger, coriander and skimmed milk powder saw the highest (above 10 per cent) increase on a year on year basis in 2014, the report said. The CAB study revealed that modern flat owners increased the house rent by 12.82 per cent while house rent in slum areas increased by 16.67 per cent.
Assessing the prices of products round the year, the CAB found that the prices of ginger and coriander witnessed 34-50 per cent and 51 per cent hikes respectively in 2014.
But, prices of onion, garlic and a few imported spices witnessed a fall in the year, the report said.  
The report revealed that rice prices witnessed a 7.5 per cent increase in the just-ended calendar year (2014).
According to the report, the prices of fish, most of the spices, salt, sugar, tea, edible oil, aromatic rice etc declined while cloth, electricity and water prices increased in 2014 compared to those of 2013.
When contacted, secretary of the CAB Advocate Humayun Kabir Bhuiyan told the FE that prices of 63 products and services fell in 2014 compared to those of 2013.
The living cost in 2014 could have been much lower if the government could strictly handle the house rents.
He said the landlords in most cases don't care about country's existing laws and regulations for lack of proper monitoring.
He said there is no logic of increasing rice price in 2014 as the country got a record production and also imported a record volume of it from abroad.   
He pointed out that the syndicate of big traders and importers are manipulating the rice market.
However, the CAB in its report recommended steps for proper imposition of 'Competition Law' to prevent syndicate in the market and urged the government to take necessary steps for making the Trading Corporation of Bangladesh (TCB) effective in true sense.
The association also emphasised the need for forming National Price Commission to keep the prices of essentials within the reach of the common consumers.
The association also advocated for holding the gas, water and electricity sectors under state ownership so that the consumers can get those services at fair rates.  
However, according to the CAB, living cost increased by 11 per cent in 2013 over 2012.
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