Inflation rises to 10.87 percent in October from 9.92 percent in September
Bangladesh’s inflation continued to ease for the second consecutive month in September as prices of both food and non-food items cooled off, according to the statistics bureau.
Inflation is projected to hit double digits at the end of the current fiscal year owing to supply-side disruptions and higher import costs as a result of currency depreciation, according to the Asian Development Bank (ADB).
Bangladesh’s worsening economic crisis has spun off a price shock with food inflation crossing 14 percent in July for the first time in 13 years.
Risk assessments of the kind done by the IMF are not usually done by the government, although it would have been desirable.
With inflation edging towards double digits and quarterly GDP growth nearly halving year on year, pressure on consumers is mounting and experts are pointing at even darker clouds.
The International Monetary Fund (IMF) said that the latest monetary policy adopted by the Bangladesh Bank would help to curb inflation, but added that further measures would be needed to make it durable.
Inflation is the leading cause of the slow growth of leading food makers
The pass-through of a sharp depreciation of the local currency accounted for half of the inflation surge seen in Bangladesh in the last financial year, according to the International Monetary Fund (IMF)
People in rural areas were hit harder by food and non-food inflation than those in urban areas over the last two months, with the overall inflation surging to a 10-year high of 9.52 percent in August.
Mismanagement, system loss and a weak supply chain of the Bangladesh Petroleum Corporation (BPC) have become a perennial problem.
If one looks at the inflationary measures that are proposed in the FY2022-23 budget, there are ample reasons to be frustrated.
The government has set an inflation target of 5.5 per cent for the next fiscal year although the prices of basic commodities are sitting at elevated levels for higher commodities prices globally amid lingering supply chain disruptions and the Russia-Ukraine war.
Macroeconomic stability has been a hallmark of Bangladesh’s development strategy. This has served the country well, especially in terms of providing a solid enabling environment for the private sector.
The inflation rate comes down slightly to 5.47 per cent in October from 5.54 per cent in September due to price fall in some non-food and food items except onion.