Govt moves to reform inflation, GDP calculation methods

The government has decided to reform the methods used for calculating the Consumer Price Index (CPI) and Gross Domestic Product (GDP) to ensure more accurate, realistic and reliable economic data.

A technical committee comprising experts and stakeholders will be formed at the Bangladesh Bureau of Statistics (BBS) to support the reform process, State Minister for Planning Zonayed Abdur Rahim Saki said on Saturday.

Speaking to reporters after a consultation meeting on CPI, inflation, wage rate index and GDP estimation at the BBS auditorium in Dhaka, Saki said reliable data are essential for effective development planning.

“GDP calculation is a very important national indicator that helps assess the country’s economic condition. Therefore, the methodology needs to be more accurate, modern and realistic,” he said.

The state minister said CPI and GDP figures are not merely statistics but the foundation of economic policymaking. Any errors or inconsistencies in these indicators could affect the country’s overall planning process, he added.

Saki said, “The government has already discussed the issue with researchers, university academics, business representatives and other stakeholders to gather suggestions on improving the existing methods. A preliminary reform proposal will be prepared based on their recommendations.”

He also said past data would be reviewed to ensure accuracy and identify any possible distortions or manipulation.

“In many cases, we have seen that published data did not fully reflect reality, creating a trust deficit among people. To restore confidence, accurate and credible information must be presented,” he said.

The state minister said the government plans to adopt internationally recognised and advanced methods of measuring inflation so that CPI reflects actual consumer spending patterns more effectively.

Officials said the proposed technical committee will conduct a detailed review of the existing GDP and CPI compilation methods and make recommendations for reform. Further consultations with stakeholders will be held before final decisions are taken.

Earlier, economists, academics, researchers and policymakers at the meeting stressed the need to modernise the estimation processes for GDP, CPI, inflation and the wage rate index. They also recommended amending the Statistics Act 2013, increasing investment in the statistical system and conducting regular BBS surveys.

Participants expressed hope that the reforms would strengthen economic planning, improve the quality of official statistics and help restore public confidence in national economic data.