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.
The government has trimmed its growth forecast for this fiscal year by a whole percentage point to 6.5 percent as the energy shortage and inflation dampened economic activities.
Bangladesh welcomed 2022 on a strong footing and was about to recover from the coronavirus pandemic in full swing and fire on all cylinders. In fact, economic activities were almost back to the pre-Covid level.
Federal Reserve policymakers may need to lift US borrowing costs above the peak 5.1 per cent they penciled in just this week, and keep them there perhaps into 2024 to squeeze high inflation out of the economy, three of them signaled on Friday.
For the 10th consecutive month, monthly wage growth of workers has remained below inflation, a trend that indicates a worsening poverty situation as many people are being compelled to cut consumption amid falling real income.
Though inflation continued to undergo a downward trend for a third consecutive month in November, non-food inflation in rural areas entered into double digits last month for the first time in recent times.
Cottage, micro, small-and-medium enterprises (CMSMEs) in Bangladesh are suffering from significantly lower sales at a time when inflationary pressure has pushed up production costs, according to entrepreneurs.
Government support was vital to help people and firms survive pandemic lockdowns and support the economic recovery. But where inflation is high and persistent, across-the-board fiscal support is not warranted. Most governments have already dialed back pandemic support.
The burden of imported inflation and supply-side implications of reduced imports will have adverse implications for economic growth and welfare, particularly of marginalised people.
Businesses in Bangladesh went through a tough time in recent months due to a dearer US dollar that pushed up their costs of raw materials and a rocketing fuel bill that contributed to the surge in operating expenses.
While the loss of Kharkiv in the northeast and Lyman in the Donetsk region, and now the pull-out from Kherson, are portraying Russia as a frail aggressor, security analysts suggest the war is far from over in Ukraine.
