Advisor Salehuddin blames ‘market instability’ for double-digit inflation

Finance Advisor Salehuddin Ahmed says that inflation has not eased even after a cut in the import duty for daily necessities due to the ‘instability in the market’.

Speaking at a PKSF Day programme organised by the Palli Karma-Sahayak Foundation on Wednesday, he said: “Instability has been created in the market in so many ways that prices are not coming down, but the National Board of Revenue has given many opportunities.”

In order to control double-digit inflation, the government reduced the import duty on rice as well as onion, potato, and cooking oil. But it has had no impact on the market.

Over the last month, the price of potatoes has increased by Tk 15-20 per kg, rice by Tk 4-5 per kg, unpacked soybean oil by Tk 10-12 per litre, onions by Tk 25-35 per kg and garlic by Tk 20-40 per kg.

The increase in the price of these products has made life more difficult for people in low income groups as they have to spend most of their income on necessities.

On a point-to-point basis, food inflation hit 11.36 percent in August, 10.40 percent in September and 12.66 percent in October.

Salehuddin, who was in charge of the commerce ministry until a few days ago, said: “The tax was reduced but the prices of daily commodities have not dropped. People became impatient and that’s normal. I told the chief advisor that the commerce ministry is not solely responsible for reducing the prices in the market.”

Many factors are involved, but people are struggling to buy necessities at the market, he said.

“I am trying to lower the price in the market,” he added.