Inflation hit 9.05% in May
Citing media reports, she said the move is expected to increase public expenditure by nearly Tk 7,000 crore
Rising prices hurt the poor, forcing cuts to necessities and increasing poverty in Bangladesh.
The caution comes as consumer prices, despite easing in the last two months, have stayed over 9 percent for the 24th month in a row
Inflation declined to 9.32% from January's 9.94%
Bangladesh inflation soared (5.86 percent to 11.38 percent in 2022-2024), driven by global shocks and food prices.
In its latest report released today, the organisation projected inflation will stabilise between 8.5% and 9.5% by June but fall to 6-7% by December
Ministers and members of parliament of the previous government relentlessly blamed “syndicates” for increasing the prices of chicken, eggs and other foods.
Inflation in Bangladesh eased for the second consecutive month in January, driven by stable food prices due mainly to an abundant supply of winter vegetables to the local market.
Small wooden furniture businesses in Bangladesh are facing a deep financial crisis as the demand for their products has fallen drastically, according to market players.
There are few, if any, central bankers who are currently not taking some public criticism for raising rates.
Sustaining the development that has taken place in Bangladesh in the past 14 years and curbing inequality are key major challenges facing the economy owing to the fallout of the coronavirus pandemic and the Russia-Ukraine war, said Planning Minister MA Mannan.
Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.
The government is going to unveil a Tk 7,61,785 crore budget for the next fiscal year on Thursday, setting containment of high inflation as a major target.
Even though poor people are struggling to make ends meet amid runaway inflation, the government allocation for social safety net programmes may not increase much in the next fiscal year.
The government is yet to take any comprehensive corrective measures to tackle macroeconomic challenges as it has not properly assessed the gravity of the situation in the current fiscal year, an economist said.
The private investment-to-GDP ratio in Bangladesh declined in the current fiscal year owing to a lower confidence among investors amid the persisting dollar crisis and global uncertainty, higher inflation and a fall in demand for goods in international markets.
Reforms following the IMF prescription should not harm disadvantaged groups
The upcoming budget poses significant challenges – arguably the most challenging in recent times – for economic policymaking in Bangladesh.
