Food inflation upsurge likely, to affect low-income people: UO

Staff Correspondent | Published: 00:05, Mar 05,2018 | Updated: 01:27, Mar 05,2018

 
 

Unnayan Onneshan, a local think-tank, has said that the recent hike in fuel oil price and high import of consumer goods were likely to result in an upsurge of food inflation, adversely affecting standard of living of the low-income people.
The research organisation, taking account of the increasing trend in inflation rate and recent upsurge in oil price, projected that food inflation was likely to stand at 8.34 per cent at the end of the fiscal year in the absence of immediate price stabilisation measures.
Twelve-month average food and general inflation stood at 7.17 per cent and 5.70 per cent respectively in December 2017 compared to 4.51 per cent and 5.52 per cent in December 2016, it said.
‘Such increase in price in the commodity market coupled with reduced production of food grains, decline in real wage, and lack of employment opportunities is likely to adversely affect people’s standard of living on the one hand and threaten overall food security in the country,’ UO said in its monthly publication of the Bangladesh Economic Update in February, released on Sunday.
The UO recommended for adoption of measures to stabilise price in the short run and strategies to foster employment augmenting growth in the long run.
It also said that monumental increase in import payment together with low export growth amid no possibility of revival of the generalised system of preferences (GSP) in US market had caused enormous current account deficit, which is highest in the last decade.
Export earnings fell short by $ 48.13 million in July-January of fiscal year 2017-2018 signalling the failure in achieving export target at the end of the fiscal year, it said.

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