The government aims to keep the average inflation rate at 5.6 per cent in the upcoming 2022-23 financial year, a 5.3 per cent hike from the current fiscal year’s target.
Finance Minister AHM Mustafa Kamal made the disclosure on Thursday while presenting the proposed Tk 6,78,064 crore national budget for FY2022-23 in parliament.
“The government is committed to contain the rising trend of inflation by addressing inconsistencies between supply and demand. Although it remained under control until the first quarter of this year, there has been a recent spike, mainly due to external and some internal factors,” he said in the budget speech.
“The causes of inflation at the global level include, among others, rising inflation in trade partners, rising oil prices, depreciation of Taka against USD, disruption of the global supply chain and the Russia-Ukraine crisis — all of which are largely beyond our control.
“Internal factors include the post-Covid-19 economic recovery, which is leading the economy to full employment. The government is, so far, refrained from adjusting domestic prices of the chemical fertilizer, gas, and power to control inflation and is providing additional subsidies,” the minister said.
“Considering all these measures, I expect that the average inflation will be 5.6 per cent in the next fiscal year,” he concluded.
According to Bangladesh Bureau of Statistics data, the country’s inflation rate stood at 6.29 per cent in April 2022.
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Kamal said, “Our main strategy for the next fiscal year would be to increase the supply while reducing the growth in demand.
“We have carefully designed the budget proposals for subsidies, incentives and sector-wise allocation for the next FY2022-2023 keeping in mind our core policy objective of containing the inflation and achieving the targeted economic growth.”
Regarding measures to keep inflation in check, the minister said that Bangladesh Bank is increasing the supply of US dollar to the foreign exchange market so that the value of Taka against the USD does not depreciate further.
“We have introduced sales through TCB so that the low-income people of the country can buy daily necessities at lower prices. In addition, a significant portion of the poor has been brought under the social security programmes,” he said.
Action is also being taken against the hoarders by commissioning mobile courts run by Directorate of National Consumer Right Protection and District Administration, he added.
