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.

To many, especially salaried and fixed-income individuals, this means they will have no option but to find ways to cut expenditures to bear increased electricity bills.

The vicious cycle of taking loans to pay bills and then taking another loan to pay off the first loan may continue throughout their lives, with little or no real improvement in their living standards.

Consumers hardly feel any sympathy for the downsizing that they have to experience due to price hikes. And all we get is haughtiness all around.

The overall inflation in Bangladesh slid 19 basis points to 9.67 percent in February thanks to a fall in the prices of both food and non-food items, according to sources at the planning ministry.

Inflation slides 19 basis points to 9.67℅

Bangladesh’s wealth inequality keeps getting wider

Bangladesh's annual average inflation crept up to 9.59% last month, way above the central bank's revised target of 7.5% for the financial year ending in June

Hossain Zillur Rahman discusses the nuances of inflation in Bangladesh with The Daily Star.

Government should match its concern about inflation with action

Like the refuse of the fish, the working class is also a refuse of the capitalist economy.