Inflation expected to drop below 8% in June: Finance adviser
The fight against inflation, however, may result in a slightly lower GDP growth rate compared to previous years, he said
Point-to-point inflation will fall below the 8% mark by June, Finance Adviser Salehuddin Ahmed said today (2 June).
The fight against inflation, however, may result in a slightly lower GDP growth rate compared to previous years, he said while presenting the budget for the fiscal year 2025-26 (FY26) via a pre-recorded telecast speech.
The government estimates 6.5% average inflation for the next fiscal year 2025-26. Average inflation at the end of the current fiscal is estimated to stand at 9%.
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In FY27, average inflation is estimated to drop to 6% and 5.5% in FY28.
To maintain the downward trend of inflation, Salehuddin stressed the importance of a stable exchange rate of the taka against foreign currencies.
He also emphasised that achieving such stability requires maintaining adequate foreign currency reserves.
Regarding inflation control measures, the adviser noted that the government has consistently implemented a contractionary monetary policy in recent months.
"As a result, the policy interest rate has been raised by 150 basis points, now standing at 10%. Alongside this, a contractionary fiscal policy has also been adopted to support the monetary measures, including significant reductions in non-essential public spending. These efforts have already begun to show positive results," he said.
According to the adviser, point-to-point inflation has dropped from 10.89% in December 2024 to 9.17% in April 2025.
"Encouragingly, the market for essential goods during this year's Ramadan was one of the most stable in recent memory. If this trend continues, inflation is expected to fall to the 8% range within June."
