The South Asian Network on Economic Modeling (SANEM) has claimed that the overall inflation rate in the country is more than double from the calculation provided by Bangladesh Bureau of Statistics (BBS).
The SANEM claimed that the overall inflation rate in urban areas is now 12.47 per cent, which is 12.10 per cent in rural areas in Bangladesh.
However, the report released by BBS on February 16 said that in the first month of January this year, the inflation rate in the country was 5.86 per cent.
The rate was above 6 per cent to 6.5 per cent in December last, which was 5.98 per cent in November.
Economists have earlier expressed doubt about the credibility of the BBS figures regarding inflation in the wake of the upward trend of commodities prices. This time in a study of SANEM found more information that shows the weakness of BBS reports.
The SANEM released an online report on Thursday entitled “Inflation: Government Statistics vs. the Reality of Marginal People”.
Selim Raihan, executive director of SANEM, said the BBS provides information on inflation rate that does not reflect reality of economics, if the correct information is not brought out, the recovery process will not be sustainable.
Inflation rate is double than the BBS data, says SANEM in a report
According to SANEM report, garment workers in the urban areas have to spend 12.45 per cent more to buy the same product than in the same period of last year. About 60.52 per cent of their earnings are spent on food.
Marginal people of urban areas who earn on a daily basis 61.59 per cent of their earnings spent on food. Rickshaws and vans’ pullers spend 60.91 per cent of their income for food purposes. The small traders spend 61.91 per cent on food consumption.
Landless farmers in rural areas spend 65.85 per cent of their total income on food purposes while daily wage based workers spend 65.99 per cent. In the case of rickshaw pullers or low-income people in rural areas, 60.91 per cent of income for food consumption.
When the main part of income is spent on food consumption, then there is a deficit in the cost of quality accomodation, education, medical care and entertainment. Also, savings become uncertain, the report said.
Source: United News of Bangladesh