FY25 Budget: Inflation target set at 6.5%
Just days before the budget for the upcoming fiscal year, expected to focus on curbing soaring prices, the country's general inflation surged to a seven-month peak of 9.89%, primarily fuelled by rising food prices
The inflation target has been set at 6.5%for Fiscal 2024-25, disclosed the Finance Minister Abul Hassan Mahmood Ali while unveiling the Tk797,000 crore national budget.
He presented the budget before the Parliament today (6 June).
Earlier in May, Prime Minister Sheikh Hasina had given the nod to the size of the budget.
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The latest budget is contractionary, with a lowered GDP growth of 6.9%.
Usually, the size of a new budget increases by 10% to 12% compared to the current year's budget, but this time it will increase by less than 8%.
This is the 54th budget of the country.
Just days before the budget for the upcoming fiscal year, expected to focus on curbing soaring prices, the country's general inflation surged to a seven-month peak of 9.89%, primarily fuelled by rising food prices.
Food price inflation jumped to 10.76% in May, according to the latest data of the Bangladesh Bureau of Statistics (BBS) released Monday (3 June). In April, food inflation rose to double digits at 10.22%.
Food inflation has stayed over 12% for three consecutive months from August last year, before subsiding to single digits by December.
Meanwhile, May's general inflation rate was the highest since October last year at 9.93%. It was 9.74% in April. Since March 2023, the general inflation rate has remained above 9%.
