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Overall inflation in Bangladesh slightly decreased to 9.74% in April from 9.87% in March, but food inflation shot up to 10.22%, putting pressure on low-income people.
The Consumer Price Index (CPI) grew 9.81% in March, data from the Bangladesh Bureau of Statistics (BBS) showed.
Non-food inflation, on the other hand, slid to 9.34%, down from 9.64% in July. It was 9.64% in March.
As consumption growth slows and population increases, almost half a million Bangladeshis are projected to fall into extreme poverty (at $2.15) between FY23 and FY24, read the World Bank's Macro Poverty Outlook (MPO) 2023.
On a broader spectrum of macroeconomic conditions the WB said that elevated inflation will weigh on consumption, while private investment will remain constrained by foreign-exchange rationing.
The inflationary pressure is maintaining a higher trajectory over the last few months as point-to-point inflation has not been falling even below the 9% rate.
On January 21, this year, the Bangladesh Bank raised the policy interest rate again by 25 basis points to 8% to curb inflation and anchor inflation expectations while ensuring adequate funding to productive sectors of the economy to support desired growth.
The central bank will continue monetary tightening in the rest of the quarters of FY24 until inflation reaches the desired level.
Messenger/Sumon
