Inflation to come down as govt takes steps: Salehuddin

Adviser to the Ministries of Finance and Planning Dr Salehuddin Ahmed today said the general inflation would come down at a “rational time” following the steps being taken by the government prioritizing on the production and supply chain.

“We’ll take actions immediately. Inflation has increased over the months due to various reasons and it’s not like stopping a horse pulling on the reins…rather it’s difficult. But it won’t take era after era. We’ll be able to tame inflation in a rationale time and already some things are being visible. The prices of vegetables have declined in the market,” he said.

The Adviser said this replying to a volley of questions after chairing a review meeting on inflation and food supply at the Finance Division Conference Room at Bangladesh Secretariat today.

Newly appointed Bangladesh Bank Governor Dr Ahsan H. Mansur and secretaries concerned attended the meeting.

Dr Salehuddin said they have discussed in the meeting about the overall production and supply chain situation of the agricultural produces alongside fisheries and livestock to address the existing challenges surrounding these sectors and thus taking prompt steps to rein in inflation.

He informed that the officials concerned have been asked to take immediate steps to have an impact on inflation and also to reduce the sufferings of common people.

The Adviser said that the issue of taming inflation was also discussed before in the meeting on Council of Advisers while urgent steps would be taken to contain inflation as it also affects local and foreign trade and investment.

He said the foreign investors always monitor the country’s investment climate and often project their net returns considering the inflation rate.

Asked when the rising inflation rate would come down, he said inflation would come down, but it would not decline immediately or tomorrow. “Definitely, there is a need for coordination between the fiscal policy and the monetary policy…we’ll have to stop wastage of fund and thus ensure fair usage of both local and foreign funding,” he added.

Replying to another question, Salehuddin, also a former central bank governor, said that the secretaries and senior officials concerned of different ministries and divisions have been asked to discharge their duties without any fear and thus pointing out the limitations and loopholes.

He noted that most of the government officials are honest, hardworking and have vigor for which the country has been moving forward.

Replying to another query on the ongoing drive against corruption in the financial sector, Dr Salehuddin said although it was not discussed in the meeting today, it would continue. “You can be reset assured that nothing has gone beyond our attention and action is being taken against the perpetrators,” he added.

He said that they would strengthen their efforts to identify and address the underlying reasons for production and supply side constrains.

When asked about the existence of syndicate in the market, the Adviser said the issue did not escape their attention as the secretaries and senior officials concerned have been asked to point out the loopholes.

He said that the interim government wants proactive steps in the economy for which the new central bank governor has been appointed after the post fell vacant following the resignation of Abdur Rouf Talukder.

Responding to another question, the Adviser said they would definitely take new steps to augment the strength of the economy and contain inflation. “We’ll see the policies and their effectiveness. Don’t worry, we’ll take in a plate as much as we can consume and thus we’ll digest.” (BSS)