Inflation expected to decrease by the end of the year

Finance Minister Abul Hassan Mahmood Ali expressed optimism at a post-budget press conference, claiming that legalised black money would spur economic activity in Bangladesh. The minister defended the measures outlined in the budget for the next fiscal year, emphasizing the government’s commitment to tackling inflation.

Ali stated that the government had proposed tax waivers on essential items to combat inflationary pressures. He assured the public that inflation would begin to decline by the end of the year, with a target of reducing it to 6.5 per cent from the current high levels.

The finance minister attributed the recent spike in inflation to external factors such as the war in Ukraine, which led to a drop in foreign exchange reserves. He also acknowledged domestic market manipulation by oligopolies as a contributing factor.

To address the inflationary pressures, Ali mentioned the continuation of a contractionary monetary policy and the possibility of expanding the Open Market Sale (OMS) activities for the poor. He also highlighted the government’s efforts to attract foreign currency deposits through offshore banking.

During the press conference, other government officials, including State Minister for Finance Ms Wasika Ayesha Khan and Finance Secretary Dr Md Khairuzzaman Mozumder, provided insights into the budget’s strategies to contain inflation and boost revenue generation.

Overall, the finance minister’s optimistic outlook and proposed measures to address inflation and stimulate economic activity garnered attention at the press conference, setting the stage for potential economic reforms in Bangladesh.