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.

Global economic growth prospects are confronting a unique mix of headwinds, including Russia’s invasion of Ukraine, interest rate increases to contain inflation, and lingering pandemic effects such as China’s lockdowns and disruptions in supply chains, according to the International Monetary Fund. 

If you find yourself worrying about money more often than you are comfortable with, you’re not the only one. Money or financial anxiety has become more common than ever and it’s a tad bit more than your regular financial conscious or savings-oriented attitude. A crippling fear of anything to do with finances, the feeling can drain you mentally and leave you feeling exhausted and insecure.

Inflation bucked the rising trend for the second consecutive month in October, helped by the cooling off of grocery prices.

Bangladesh may fall into deep economic crisis unless it puts in place comprehensive policies and reforms, and starts implementing them immediately, said a number of economists yesterday.

What Bangladeshi economists have been saying for a long time is pretty much what the International Monetary Fund (IMF) has told our central bank and the government.

All our institutions are crumbling because of politicisation, inefficiencies, and corruption.

Acquiring the basic necessities was definitely easier in the past.

Govt must do more to stop consumers’ purchasing power erosion

Governments confront difficult trade-offs amid sharp increases in food and energy prices. Policymakers must protect low-income families from large real income losses and ensure their access to food and energy. 

Rising external debt may pose some risks to Bangladesh’s foreign exchange reserves in the future as higher debt servicing will be required on accumulated loans, said the Bangladesh Bank yesterday. 

Bangladesh made gains in food production and ensured the availability of rice in recent years. But surging inflation, erratic weather, and the Russia-Ukraine war affected the availability of cereals and reduced low-income people’s access to food this year.

Savers are now facing losses on their deposits with banks due to surging inflation, with many solely dependent on interest earnings finding themselves in a tight corner.