5.6% inflation target set for FY2022-23

The government has set a 5.6 per cent inflation target in the proposed budget for the 2022-23 fiscal year although the prices of essentials and other commodities are persisting at higher levels.

In April, inflation in Bangladesh rocketed to an 18-month high driven by higher food costs as global uncertainties stemming from the Russia-Ukraine war and supply chain disruptions show no sign of abating.

Point-to-point, inflation shot up to 6.29 per cent in April. It was 6.22 per cent in March.

Inflation averaged 5.81 per cent in April.

The International Monetary Fund is projecting that global inflation will remain elevated for much longer. Local economists say inflation would stay at higher levels for until the end of 2023.

Owing to higher prices, the government is set to miss the revised inflation target of 5.7 per cent for the fiscal year ending in June this year. It had set a 5.3 per cent inflation target at the start of the fiscal year.

In his budget speech, Finance Minister AHM Mustafa Kamal said the government is committed to containing the rising trend of inflation by addressing inconsistencies between supply and demand.