Govt firm to keep inflation within 7 per cent this fiscal

The government in its first quarterly report is set to keep inflation within targeted rate of 7.0 per cent for the current fiscal.
Finance Minister AMA Muhith will place the July-September report tomorrow (Wednesday) before the parliament.  
However, the report sees some challenges to attaining inflation target including pay hikes both in public and private sectors to attain the average yearly inflation target of 7.0 per cent.
Supply chain disruption during prolonged restive politics, risks stemming from high inflation rate in India and rising prices in global oil markets were also seen as major risks for reaching the target.
In India, the rate of inflation increased by more than 9.0 per cent on an average in recent months.
It said Indian inflation affects the prices of essential goods in Bangladesh and thus leads to rise in inflation rate.
It reads: "Despite the risks, the government will not review its projected target."
It further reads: "The government still expects that the 7.0 per cent average inflation target will be achieved in current fiscal year."
The monthly inflation rate released for February eased somewhat but it still remained well above the average target of 7.0 per cent.
The average eight-month average inflation also remained well above the national target.
The food inflation went up in February last, but some analysts say the inflation might rise again in the months ahead following government decision in respect of power tariff hikes.
The central bank also saw in its first quarterly report of the fiscal year a number of risks including supply disruption in attaining the annual average inflation target.
However, the government will place another economic report for the period of July-December before the Jatiya Sangsad on March 20.