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.
Bangladesh's high inflation is straining households financially and mentally. Financial stress disrupts mental balance, leading to burnout, impaired relationships, and physical symptoms. Coping strategies include exercise, budgeting, support systems, reframing thoughts, and fostering mental resilience.
Arrival of winter vegetables contributes to the decline
The new budget for the upcoming fiscal year is unlikely to provide respite from one of the longest spells of sustained inflation in Bangladesh as the government’s measures appear to be missing the impetus required to contain the price spiral.
The Consumer Price Index grew by an average of 9.73 percent in the first 11 months of the current financial year, which was 8.64 percent during the identical period a year prior, data from the Bangladesh Bureau of Statistics showed.
The national budget for the fiscal year of 2024-25 is going to be presented in parliament on Thursday with monumental tasks ahead for the government to collect more revenues and contain stubbornly high inflation.
Fighting raging inflation and putting the economy back on track have not been taken seriously as evidenced from the government’s delayed response, which set the scene for one of the worst economic crises in its history and an unprecedented prolonged period of higher consumer prices, said an economist.
According to a provisional estimate of the Bangladesh Bureau of Statistics (BBS), consumption of goods and services grew 3.53 percent in 2023-24, up from 2.52 percent in the last fiscal year.
Bangladesh's factory output grew 6.66 percent in the current fiscal year, the slowest pace of expansion since the Covid-19 pandemic hit the country, as the stubbornly high inflation hurt domestic demand and the shipment of export-oriented goods slowed.
Government must address the rising food prices immediately
According to the Bangladesh Bureau of Statistics (BBS), food inflation jumped 35 basis points to 10.22 percent last month from 9.87 percent in March. This was the first time in five months that food inflation hit double digits.
Inflation in Bangladesh fell seven basis points to 9.74 percent in April from a month ago on the back of declining prices of non-food items.
Inflationary pressure may push some “vulnerable” households below the poverty line.
