The government has set a target to contain inflation at 7.5 per cent in the next fiscal year (FY27) as curbing high inflation remains the most urgent macroeconomic challenge before the government.
“The government aims to reduce inflation to 7.5 per cent and raise GDP growth to 6.5 per cent in the upcoming fiscal year. These targets are designed to ensure stability, enhance purchasing power, and improve living standards,” said Finance Minister Amir Khasru Mahmud Chowdhury while placing the budget for FY27 in the Jatiya Sangsad today, Thursday.
He said in July 2024, general inflation surged to 11.66 per cent while food inflation spiked to a catastrophic 14.10 per cent, the highest levels seen in recent history.
“The burden of this inflation falls squarely on low-and middle-income households, stripping them of their real income, wiping out their life savings, and plunging families into financial distress. To put this into perspective, under the BNP administration in FY 2005–06, inflation was successfully managed and maintained at a highly stable and moderate rate of 7.17 per cent,” he said.
In recent years, Khasru said Bangladesh’s economy has experienced significant volatility, external pressures, and deep-rooted structural challenges.