Unstable prices
Mehdi Rahman, On e-mail
It is frequently reported in the media that foreign exchange reserve is increasing day by day and it has come to above 4 billion US dollars. In respect of export business of international trade, a substantial growth is recorded as of February 2007.The country is experiencing an upward trend in wage remittances. In view of such upward movements, Bangladesh economy is being considered to be on a sound footing. On the other hand, the present spiraling of the prices of essential goods is putting tremendous pressure on the marginal and fixed income groups. This indicates that the value of taka has decreased in respect of its purchasing power. The inflation with regard to food prices was recorded at 8.36 percent in February, 2007. Economists and research organisations suggest adopting different means to overcome the situation. The crisis is basically due to reduction of supply in line with demand. The commodities for which the crisis is being faced are agro and agro-based products. They can easily be produced in Bangladesh. They are imported to meet the demand. It is said the price hike is due to the change of price levels in the international market. As such, the prices of such items are increasing in the local market. The central bank should come forward with policy guidelines to contain the unbearable price hike.
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