Average Inflation in FY23 to Remain at 5.6Pc

Finance Minister AHM Mustafa Kamal today said the average inflation in the next fiscal year (2022-2023) will remain at 5.6 percent.

"We've earlier discussed the measures that we will take in the coming budget to contain inflation. Considering all these measures, I expect that the average inflation will be 5.6 percent in the next fiscal year," he said.

The Finance Minister said this while placing the proposed national budget for FY23 at the Jatiya Sangsad here today.

He said the government is committed to contain the rising trend of inflation by addressing inconsistencies between supply and demand.

 "Although it remained under control until the first quarter of this year, there has been a recent spike, mainly due to external and some internal factors," the minister said.

Kamal said the causes of inflation at the global level include, among others, rising inflation in trade partners, rising oil prices, depreciation of Taka against USD, disruption of the global supply chain and the Russia-Ukraine crisis - all of which are largely beyond our control.

He mentioned that the International Monetary Fund (IMF) made a forecast that the average inflation rate in the United States (US) and the United Kingdom (UK) will be 7.68 percent and 7.41 percent respectively in 2022.

"Internal factors include the post-COVID-19 economic recovery, which is leading the economy to full employment," he added.

 The Finance Minister said the government is, so far, refrained from adjusting domestic prices of the chemical fertilizer, gas and power to control inflation and is providing additional subsidies.

The Bangladesh Bank is increasing the supply of US dollar to the foreign exchange market so that the value of Taka against the US dollar does not depreciate further, he said.

"We've introduced sales through TCB so that the low-income people of the country can buy daily necessities at lower prices. In addition, a significant portion of the poor has been brought under the social security programmes," Kamal added.

The Finance Minister also said action is being taken against the hoarders by commissioning mobile courts run by Directorate of National Consumer Right Protection and District Administration.