Fighting inflation --

Stubbornly high inflation rate over the two and a half years have diminished the purchasing power of people, causing financial strain and lowering living standards. In Bangladesh, rapidly growing inflation has outpaced incomes, affecting most of the population. Particularly, low-income people are struggling to meet living costs with their current earnings.

Several measures can be adopted to curb inflation. The Bangladesh Bank has already tightened monetary policy but its impact is not visible yet. Similarly, the government should utilise fiscal policy tools such as adjusting spending and tax rates to manage inflation. Price controls on specific goods and services can limit the impact of inflation on the cost of living. Additionally, managing the exchange rate and implementing policies to boost industrial and agricultural production can help alleviate inflationary pressures.

Improving transportation infrastructure and fostering growth of Small and Medium Enterprises (SMEs) can also contribute to reducing inflation. While these measures hold promise for controlling inflation, it is crucial to striking a balance for prevention of adverse effects on economic growth and development. A coordinated and cautious approach is essential to effectively manage inflation.

Sanjay Bhattacharjee

Senior Officer

BASIC Bank Limited