Bangladesh on track toward 7.5% inflation goal, claims minister

She outlined governmental strategies, including contractionary monetary policies, import controls, and austerity measures, aimed at achieving this goal.

Presenting the “2023-24 Budget Implementation Progress Report” for the second quarter of the financial year, Waseqa emphasised inflation control as a top governmental priority. Despite efforts, she acknowledged global factors such as the Russia-Ukraine conflict, surging commodity prices, and US dollar appreciation contributing to inflationary pressures worldwide, including Bangladesh.

Data from the Bangladesh Bureau of Statistics revealed a general inflation rate of 9.48 per cent in December, rising to 9.81 per cent by March. Additionally, May witnessed an increase in gas prices for power plants and industries, alongside slight hikes in diesel prices even as discussions about potential electricity price increases further fuelled uncertainty, compounded by concerns over rice quality and production disruptions due to April’s intense heatwaves.

To combat inflation, the government has intensified policy measures, notably adjusting interest rates in the banking system, resulting in a significant increase, with the weighted average lending rate reaching 9.36 per cent by December.

Recent adjustments exacerbated concerns over reduced money supply in the market.

Addressing the session, the state minister acknowledged global economic instability due to COVID-19 and the Russia-Ukraine conflict, prompting a downward revision of the current fiscal year’s growth target from 7.5 per cent to 6.5 per cent.

Despite external challenges, she expressed confidence in Bangladesh’s resilience, affirming the nation’s ability to navigate adversity and continue progressing.

Fibre2Fashion News Desk (DR)