In a recent report, the Bangladesh Bureau of Statistics (BBS) unveiled a surge in the nation’s inflation rate, reaching 9.81% in March, marking a notable uptick from February’s 9.67%.
According to the latest BBS data, both food and non-food inflation witnessed an increase during the month. Food inflation surged to 9.87%, while non-food inflation rose to 9.64%, contrasting with February’s figures of 9.44% and 9.33% respectively.
Urban areas bore the brunt of inflationary pressures, with urban inflation soaring to 9.94%, surpassing rural inflation at 9.68%. Urban food inflation peaked at 9.98%, accompanied by non-food inflation at 9.71%, while rural areas recorded figures of 9.86% for food and 9.41% for non-food inflation in March.
Dr. Ahsan H. Mansur, a former senior economist at the IMF, underscored the prolonged struggle with high inflation, disproportionately impacting individuals with limited incomes.
In response, the Bangladesh Bank initiated various measures, including a hike in the policy interest rate, leading to an increase in the bank loan interest rate to over 13.55%. However, Dr. Mansur lamented the sluggish economic impact of these measures, attributing it to delays and bureaucratic impediments.
Economists identify an unregulated market system and escalating product prices as the key drivers behind the persistent inflationary trend, emphasizing the need for targeted interventions to address the challenges posed by soaring inflation rates, particularly in urban areas.
