Warnings from World Bank should be taken seriously
CPD’s emphasis on macroeconomic stability amid LDC graduation concerns
CPD’s suggestion can mitigate the effects of inflation on poor households
Their exhausting wait for subsidised essentials is quite telling
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.
Inflation, fuelled by higher food prices, climbed 15 basis points to 9.89 percent in May from 9.74 percent a month earlier, figures from Bangladesh Bureau of Statistics showed yesterday.
The national budget of FY2024-25 is set to be announced at a time when Bangladesh’s economy is going through a difficult phase.
Why does macroeconomic instability continue to plague Bangladesh even after partnering with the IMF?
Amid persistently higher inflation in Bangladesh for more than a year, the low- and middle-income groups are struggling to meet their daily expenses.
On April 2, the World Bank forecast that inflation in Bangladesh might stay elevated at 9.6 percent in fiscal year (FY) 2023-24 before moderating to 8.6 percent in FY 2024-25.
Even rate hikes cant tame a raging inflation, so what is the solution ?
Businesses in Bangladesh will face challenges in managing the impacts of higher inflation and exchange rate in 2024 as well while the cost of production and operation may increase amid the rising bank interest, several business and corporate leaders warn
Most South Asian countries succeeded in reining inflation in 2023 in a major relief for their populations who struggled after prices spiralled owing to the shocks stemming from the lingering impacts of the coronavirus pandemic and the Russia-Ukraine war
Food inflation at 12.56 percent in October this year is the highest in a decade
Says CPD’s Mustafizur Rahman
Most of the macroeconomic indicators of Bangladesh have been in bad shape for the last several months owing to external and internal factors, intensifying people’s suffering as consumer prices surged to record levels.
Bangladesh Bank is preparing a roadmap for the next government to address the three major issues of exchange rate instability, high inflation and high defaulted loan ratio bearing upon the economy.
Although Bangladesh Bank is taking several initiatives to reduce inflation, only implementing monetary policies is not enough as fiscal policies also play a big role in this regard, according to the South Asian Network on Economic Modeling (Sanem).
The International Monetary Fund staff mission yesterday raised four burning issues in their meetings with the Bangladesh Bank and the finance ministry: foreign currency reserves, inflation, banking sector and revenue collection.
