Regulatory Grip Is Still Weak

No reflection of official data in market, Allow others to make the data perfect.

September inflation data published by BBS shows marked decline in inflation. Average inflation declined to 9.92% and food inflation declined to 10.36%. It means for the two consecutive months average inflation declined. If the trend continues significant improvement in price levels may be observed by the end of this year. However, except rice, key kitchen commodities have yet to reflect the inflation data. At home rice registered decline in prices by Taka 4/5 per kilo. This is largely due to decline in prices at international market. India also lifted restrictions on export of non-Basmati rice. Coarse rice registered the marked decline.

Weak regulatory grip is more conspicuous. Despite Army and police presence, people are still being beaten to death. Law & order has yet to return to normalcy. A lack of accountability is still prevailing in the ground. Last week I noticed that mobile data pack prices were raised by all the operators in unison. This time volume of the data pack for shorter duration was also lowered. Moreover, the speed of the internet has yet to reach the pre-election level. Too many unrest, mob beating may be one of the reasons for slow speed. But the operators have not furnished any explanation yet. Unlike the previous regime, there is no whimsical imposition of tariff or duties. Then why is this price hike?

Reactivating BTRC's hearing on mobile phone services to a great extent address the issues. Similarly, resuming the operation of Bangladesh Competition Commission could make marked improvement in consumption behavior of the consumers and competition.

Since this regime does not have political loyalists/storm troopers on the ground or inside the administration ,there is a tendency not to respect their orders / instructions. Hopefully ,in the coming months their regulatory grip will be strengthened.

I think govt should also allow others to calculate and publish the consumer price index.Consumer's body,Bangladesh Bank, association of banks, market research firms or individuals should be allowed to do the CPI survey and publish the inflation data. Since inflation is affecting interest rate, vernacular activities, investment, it will be prudent to bring multiple parties to calculate the inflation and then have a discussion on them. Then govt can officially announce the true inflation data, emerging from so many studies. Economic data should reflect the market. Govt's own think tank's recent study reveals people's lack of confidence in govt data. Info on true situation in the ground and successful implementation of instructions are keys to have a firm regulatory grip.