Bangladesh Bank Governor announced that controlling inflation may take 12 to 18 months, following October’s inflation spike to 10.87% due to recent floods and wage pressures. Speaking after a meeting on inflation management, the governor highlighted ongoing efforts to stabilize prices ahead of Ramadan, including a directive for banks to waive LC margins on essential goods imports and temporarily lift the single-borrower limit for big importers. He acknowledged rising rice prices and the challenge of balancing affordability with farmer welfare amid increased input and labor costs.
Despite high domestic inflation, international commodity prices, including oil and LNG, have declined, which could reduce import-related inflation. Finance Secretary added that the government has reduced taxes on key food items to alleviate pressure on the poor, coupled with an increased open-market sale of essentials to support vulnerable populations.