Mounting worries over inflation
Monday, 19 November 2007
PRICES are no matter to consumers of luxury products. Rich consumers can, and do buy products at prices far above their real value as they think that it adds to their status or elegance and distinguish them from the others. In such high-end markets, rising price lines don't matter. The rich, for ego satisfaction can buy high grade products at prices which common people would find unthinkable or unacceptable.
But any price increase, and that too arbitrary, must cause a serious concern to the consumers of low-end segments of the markets. Bangladesh is a country with 40 per cent of its population with an existence below the poverty line or near to it. Nonetheless, this vast number of the low enders in the market form a vast body of consumers of essential goods or services, necessary for survival. Any rapid upward movement of the prices of the basic essential goods or services is bound to deal a blow to them in view of their modest purchasing power. Now the fear looms large over prices of essential consumer goods witnessing yet another surge following the latest cyclone that has caused, again, disruptions to the supply-line because of its adverse impact on standing crops and production capacities for some goods and services.
There is no denying that fiscal year 2006-07 came to an end with news of improved macro economic management in different spheres. It is impossible to refute them as official publicity designed to make a favourable impression. Improvements were really noted ranging from higher forex reserve to higher or record export earnings and remittance receipts. But the successes bypassed the common man due to pressure of rising prices on his meagre income. The upswing of prices continue. The macro-economic situation has also come under some strains because of both unfavourable international and domestic circumstances. Under this situation, the government has to play a pro-active role in a realistic manner to tame the inflationary pressure and to assuage the sufferings of the common people.
Shamim Ahmed
Banani,
Dhaka
But any price increase, and that too arbitrary, must cause a serious concern to the consumers of low-end segments of the markets. Bangladesh is a country with 40 per cent of its population with an existence below the poverty line or near to it. Nonetheless, this vast number of the low enders in the market form a vast body of consumers of essential goods or services, necessary for survival. Any rapid upward movement of the prices of the basic essential goods or services is bound to deal a blow to them in view of their modest purchasing power. Now the fear looms large over prices of essential consumer goods witnessing yet another surge following the latest cyclone that has caused, again, disruptions to the supply-line because of its adverse impact on standing crops and production capacities for some goods and services.
There is no denying that fiscal year 2006-07 came to an end with news of improved macro economic management in different spheres. It is impossible to refute them as official publicity designed to make a favourable impression. Improvements were really noted ranging from higher forex reserve to higher or record export earnings and remittance receipts. But the successes bypassed the common man due to pressure of rising prices on his meagre income. The upswing of prices continue. The macro-economic situation has also come under some strains because of both unfavourable international and domestic circumstances. Under this situation, the government has to play a pro-active role in a realistic manner to tame the inflationary pressure and to assuage the sufferings of the common people.
Shamim Ahmed
Banani,
Dhaka