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5.4pc inflation target for FY21

FE REPORT | June 12, 2020 00:00:00

The government has set a target to keep the inflation rate at a comfortable level of 5.4 per cent in the next fiscal year (FY), 2020-21.

It kept the target at 5.5 per cent in the outgoing FY, 2019-20.

The point-to-point inflation rate in May dropped to 5.35 per cent against that of 5.96 per cent in April, official data showed.

The latest Bangladesh Bureau of Statistics (BBS) data show the inflation rate in May was recorded lower as prices of some daily items were continuing to ease.

According to the BBS, point-to-point inflation a year ago in May 2019 was recorded higher at 5.63 per cent.

Bangladesh has been at a comfortable level on inflationary pressure over the past few years as the global oil and food prices were almost stable.

In his budget speech, finance minister AHM Mustafa Kamal on Thursday said: "We expect that inflation will be 5.4 per cent during the period."

Local economists also expect that the nation would not feel much inflationary pressure in FY 2021 too as economic shocks due to Covid-19 would be continuing.

Bangladesh was the worst victim of inflationary pressure between FY 2007 and FY 2010 when oil and food prices had shown a sky-rocketing trend.

The consumer price index (CPI) from FY 2011 started to ease which fell to 5.5 per cent in FY 2019.

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