The Bangladesh Bank is cautiously optimistic that its policy initiatives, combined with government efforts, will help ease inflation in the coming months. An analysis of inflation data for Q1 2024, indicates a slight drop in the contribution of import-concentrated items due to falling global commodity prices. The central bank blames high global commodity prices and a weaker local currency for persistent inflation, which reached double-digit highs. Food inflation was driven by protein-based items, spices, and culinary essentials, while non-food inflation was fueled by higher tariffs on energy. Inflation remained around 10% during January-March 2024. The analysis shows perishable items significantly contributed to inflation, and wage growth has lagged behind inflation since April 2022, resulting in a decline in real income.
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