Measures against inflation
Monday, 24 March 2008
THE inflation caused by supply-side inadequacies and cost-push factors, is a more serious one that has unfortunately gripped the Bangladesh economy. Therefore, the thrust of the government's policies should be on promoting productive spending. The same will then help in raising productivity and ease the supply-side problems which is fuelling the inflation.
The imported inflation or cost-push inflation caused by importing raw materials at higher prices needs to be addressed with more efficient import operations. Procurement from countries with relatively cheaper prices, reaching deals for longer term supplies at stable prices, state-to-state trading at concessional prices, etc., should be tried to reduce or keep stable the prices of these imports. The import duties on raw materials and intermediate products can be slashed down where possible. Production managers in local enterprises can learn to use raw materials and intermediate products more efficiently to cut costs and the benefits thereof can be passed on down to the consumers of their products.
Mozzamel Haque
Dhanmondi, Dhaka
The imported inflation or cost-push inflation caused by importing raw materials at higher prices needs to be addressed with more efficient import operations. Procurement from countries with relatively cheaper prices, reaching deals for longer term supplies at stable prices, state-to-state trading at concessional prices, etc., should be tried to reduce or keep stable the prices of these imports. The import duties on raw materials and intermediate products can be slashed down where possible. Production managers in local enterprises can learn to use raw materials and intermediate products more efficiently to cut costs and the benefits thereof can be passed on down to the consumers of their products.
Mozzamel Haque
Dhanmondi, Dhaka