Bangladesh is targeting an average inflation rate of 5.6 per cent in the coming fiscal year.
There has been a recent spike in prices, mainly due to external factors, Finance Minister AHM Mustafa Kamal said in his budget speech in parliament on Thursday, reports bdnews24.com.
“The causes of inflation at the global level include, among others, rising inflation in trade partners, rising oil prices, depreciation of the taka against the US dollar, the disruption of the global supply chain and the Russia-Ukraine crisis -- all of which are largely beyond our control,” he said.
Internal factors, such as Bangladesh’s recovery from the pandemic, also played a part, the minister noted.
“The government is committed to containing the rising trend of inflation by addressing inconsistencies between supply and demand,” he said.
According to the budget proposal, the government is refraining from adjusting domestic prices of chemical fertiliser, gas and power in order to stave off inflation.
Bangladesh Bank is also increasing the supply of the US dollar to the foreign exchange market to prevent the value of the taka depreciating further against it.
The government also touted TCB sales that provide daily necessities at lower prices for low-income groups.
“A significant portion of the poor have been brought under social security programmes,” Kamal said.
The Directorate of National Consumer Rights Protection and local government bodies are also taking action against hoarders through mobile court drives.