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Bangladesh’s inflation is projected to ease to 8.0 per cent in FY 2025-2026, according to the Asian Development Bank (ADB).
The bank predicted it by assuming that there will be favourable weather, moderating global oil prices, and tighter monetary as well as fiscal stances.
It said enduring inflation remains a significant hurdle due to market inefficiency brought on by regulatory shortcomings, restrained competition in wholesale markets, insufficient market information, supply chain constraints and depreciation of the local currency.
Despite several inflation-control measures, including monetary tightening and agricultural policy support, monthly inflation remained in double digits in the first six months of FY2025, ending June 30 next.
Recent data show that inflation eased slightly to 9.9 per cent in January 2025 from 10.9 per cent in December 2024.
“With expected moderation of global fuel and commodity prices, inflation is expected to ease in the remaining months of FY2025.”
But the fiscal year (2025) average is expected to be in double digits.
The Monetary Policy Statement for January–June 2025, released in February 2025, indicates that Bangladesh Bank will continue to pursue a tight monetary policy with a focus on curbing inflation and stabilizing the foreign exchange market while building foreign exchange reserves and resolving a high rate of nonperforming loans in banks and other financial institutions.
Bangladesh Bank (the central bank) expects inflation to subside to 7.0 and 8.0 per cent by the end of June 2025.