What is the actual rate of inflation?
For the last few days, print and electronic media have been busy with Bangladesh's inflation figure of about 6 percent for the year 2016, lowest in about 5 years or so. But I have never found our official inflation figure matching the inflation that I have experienced over the years. Recently, I dealt with the real inflation figures of cities, towns and rural areas as compared to the inflation data on the basis of national average.
In around 1970, the starting monthly salaries of 1st Class officers were Tk 500 plus 20 percent house rent allowance and 10 percent medical allowance. Now in 2016, the salaries of the same are perhaps about Tk 30,000, all inclusive, which is a rise of about 40 times from that of 1970.
Let us look at the prices of some staples now and then. Around 1970, quality rice was Tk 1 per kg and now it is Tk 60 per kg, indicating a rise of 60 times; beef was Tk 1.50 per kg and now it is Tk 500 per kg, a rise of around 350 times! Gold was Tk 250 per ounce while it is now Tk 50,000 per ounce, which points to a rise of about 200 times. The fact is that between 1970 and 2016, salaries have risen only by 40 times, and the costs of essentials have risen by 60 to 300 times.
This explains that the real inflation has always been more than what has been officially stated. Yet public servants and many others have been living more luxuriously than 40 years or so ago and one wonders, where the money to maintain their lifestyles comes from.
Luthfe Ali, On e-mail
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