ADB predicts inflation to decrease in Bangladesh

The Asian Development Bank (ADB) believes that inflation will come down in Bangladesh in the coming months. The organization said, despite various initiatives, the inflation rate in Bangladesh was very close to double digits due to the increase in food prices from last July to October. However, the continuation of contractionary monetary policy, initiatives to introduce market-based exchange rate, increase in food grain production and fall in commodity prices in the international market are expected to moderate the inflation rate in the coming months.

The forecast was made in ADB’s Asian Development Outlook-December 2023 report released on Tuesday (December 19).

Earlier, the Asian Development published on last April that the inflation rate in Bangladesh may be 6.6 percent in the current financial year. ADB maintained that prediction in the report published last September.

High inflation has been going on in the country for several consecutive months. Average inflation was over 9 percent from last June to November. In such a trend, the government has recently revised its target. In the budget of the current financial year, the inflation target is set at 6 percent. According to the latest decision, the government wants to raise the inflation target to 7 percent in the current fiscal year.

Recently, the government has also revised the GDP growth target for the current financial year. Considering the overall economic situation of the country, the growth target has been reduced to 6.5 percent. This target in the budget was 7.5 percent.

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