FROM PAGE B1

However, prices should be adjusted only to the extent required by global market movements, and that level of increase would be acceptable, she added.

Preoty criticised the second round of fuel price increases, arguing that recent international market trends did not justify the move. “Fuel prices have been increased for a second time, which was unnecessary.”

The CPD senior research associate said, “If you look at international markets, fuel oil prices have recently been on a downward trend. Under such circumstances, the government could have avoided raising fuel prices and allowed the Bangladesh Petroleum Corporation to absorb the adjustment through its own financing.”

Linking energy prices with inflation, CPD called for structural reforms in the energy sector.

At the event, CPD Executive Director Fahmida Khatun said the Bangladesh economy was facing challenges on multiple fronts and remained vulnerable to both domestic structural weaknesses and external shocks.

She said elevated inflation, driven largely by higher fuel, transport and service costs, remained one of the key concerns.

Wage growth continued to lag behind inflation, eroding household purchasing power, particularly among low and fixed-income groups, Fahmida said.

Apart from rising energy costs, CPD identified weaknesses in the supply chain for essential commodities as another major factor behind inflation.

According to a CPD market survey, a long chain of intermediaries dominated by urban wholesalers is helping keep food prices high in Bangladesh.

The survey, which covered around 1,000 market participants across 10 essential commodities, found that multiple layers of traders significantly increased prices before goods reached consumers.

It found a strong correlation between the number of intermediaries and retail prices. Green chilli recorded the highest farm-to-retail markup at 116 percent, followed by onions at 87 percent, pulses at 78 percent and brinjal at 72 percent.

By contrast, products with shorter supply chains, including eggs, broiler chicken, beef and fish, recorded relatively smaller price increases.

“The findings suggest that inefficiencies within the marketing system, rather than production shortages alone, are contributing significantly to inflationary pressure,” CPD said, adding that market concentration among urban aratdars weakens competition and enables excessive intermediary profits.

CPD recommended stronger regulatory oversight of wholesale markets to curb oligopolistic behaviour, improve price transparency and strengthen direct links between producers and retailers.

It also called for supply chains to be streamlined by reducing unnecessary intermediaries, expanding digital market systems and improving logistics infrastructure.

To help stabilise prices, the think tank suggested maintaining strategic buffer stocks of essential commodities and releasing those during supply disruptions, alongside stronger market surveillance.