Dhaka: Finance Adviser Dr. Salehuddin Ahmed today announced that the point-to-point inflation rate is projected to drop below 8% by June. He conveyed this while presenting the proposed budget for the fiscal year 2026 in a pre-recorded telecast speech.
According to Bangladesh Sangbad Sangstha, Dr. Ahmed indicated that the fight against inflation might lead to a slightly lower GDP growth rate compared to previous years. Provisional estimates suggest that the GDP growth for FY2024-25 could be 3.97%. However, he expressed optimism that the final estimate would be higher, with growth expected to rise to 6.5% in the medium term.
To sustain the inflation decline, Dr. Ahmed highlighted the necessity of a stable exchange rate for the taka against foreign currencies. He further emphasized that maintaining adequate foreign currency reserves is crucial for achieving this stability.
The Finance Adviser elaborated on the government’s recent efforts to control inflation. He noted the implementation of a contractionary monetary policy, which has led to a 150 basis point increase in the policy interest rate, now at 10%. This was complemented by a contractionary fiscal policy aimed at reducing non-essential public spending, measures that have already shown positive outcomes.
Dr. Ahmed reported that point-to-point inflation had decreased from 10.89% in December 2024 to 9.17% in April 2025. He remarked positively on the stability of the market for essential goods during Ramadan, suggesting that if this trend continues, inflation is anticipated to fall to the 8% range by June.