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Inflation target set at 5.3pc

FE REPORT | June 04, 2021 00:00:00

The government has taken a target to keep the average inflation rate within a comfortable trajectory of 5.3 per cent in the next fiscal year (FY), 2021-22.

The 12-month average inflation between May 2020 and April 2021 was recorded at 5.60 per cent, the government data showed.

In the outgoing FY 2021, the government had set a target to keep the inflation rate within 5.40 per cent.

The Bangladesh Bureau of Statistics (BBS) latest data showed the rate of point-to-point inflation in April 2021 was recorded a little bit higher at 5.56 per cent, as prices of some daily items grew.

In the previous month (March), the inflation was 5.47 per cent, the official data showed.

According to the BBS data, the point-to-point inflation a year ago in April 2020 was recorded higher at 5.96 per cent.

Bangladesh had been at a comfortable level regarding inflationary pressure over the last few years, as the global oil and food prices had been almost stable.

In his budget speech on Thursday, Finance Minister A H M Mustafa Kamal said: "The point-to-point inflation in March 2021 was 5.47 per cent, and we can see a declining trend in food inflation due to good harvest of boro rice."

"In the last 12 years, the average growth of GDP was 6.6 per cent. It was above 7.0 per cent in FY 2017, FY 2018 and FY 2019, and exceeded 8.0 per cent in FY 2019."

"Price inflation was at a tolerable level. In FY 2005-06, our per capita income was US$ 543, which is now $2,227. At that time, the poverty rate was 41.5 per cent," Mr Kamal added.

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