Bangladesh witnessed a significant surge in inflation during the month of May, reaching a decade-high of 9.94%, as reported by the Bangladesh Bureau of Statistics. This figure surpassed the previous recent record set in August of last year when the Consumer Price Index had soared to 9.52%.
The rise in food inflation played a crucial role in driving up the overall inflation rate, as it increased by 40 basis points to reach 9.24% in May, up from 8.84% in April. Similarly, non-food inflation also experienced an upward trend, standing at 9.96% in the previous month, marking a 24 basis point increase from April’s 9.72%.
The sustained high inflation in Bangladesh can be attributed to several factors. Firstly, the global supply chain disruptions caused by the ongoing Russia-Ukraine conflict have compounded the challenges created by the COVID-19 pandemic, leading to increased inflationary pressures.
Domestic factors such as a surge in import bills, energy shortages, a crisis involving the US dollar, and market imperfections have also contributed to the elevated consumer prices in the country.
The escalating inflation poses significant challenges for Bangladesh, impacting the purchasing power of its citizens and potentially affecting the overall economy.
Authorities will need to employ effective measures to mitigate these inflationary pressures and stabilize the situation in the coming months.