A surge in oil prices in the international market along with a dollar value rebound may spike the prices of essential commodities in the local market, analyst warns.
“International oil prices directly affect the local market, as imported commodity prices depend on the international market,” said AB Mirza Azizul Islam, a former advisor to the caretaker administration.
“If the dollar price continues to climb up prices of essentials will have a negative impact,” he added.
According to Bangladesh Bank, Taka is currently traded between 84 and 86 against the US Dollar.
Trader Helal Uddin said prices would remain stable due to adequate supply and stock of locally produced commodities.
"No possibility of market crisis except when the dollar price hikes,” added Uddin, a former vice president of Federation of Bangladesh Chamber of Commerce and Industries.
According to the Bangladesh Bureau of Statistics (BBS), prices of essentials spiked recently with prices of onion, garlic, ginger, rice, edible oil, flour, powdered milk went up significantly.
Data from BBS shows, 6.06 percent inflation has hit in November last year while the government has set a target of inflation at 5.5 percent for current fiscal.
Policymakers, however, said saying otherwise. They claimed prices of essentials were stable in the local national market last year except for onion with no possibility rise in inflation in 2020.
Assuring no more price hike, Commerce Minister Tipu Munshi said, “The government is working to keep prices of essentials stable.”
Finance Minister AHM Mustafa Kamal said the national budget would not affect prices in the market in this year as 2020 marks the 50th anniversary of independence and birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
“The government's strategy is to increase revenue rather than raising the tax rates,” he said before describing it as a tool to control inflation.
“The government has allotted incentives for people from all walks of life including blacksmiths, potters, and fishermen,” Kamal added.
Referring to bumper production of rice in this harvest, Agriculture Minister Abdur Razzak said that rice price will not inch up in 2020
"Production of fish and vegetable are also favourable,” he claimed.