Controlling Inflation in Bangladesh: A Comparative Assessment

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It would seem that the global economy is going in the direction of a period of accelerated inflation that has not been experienced in the globe in the last four decades. In addition, the repercussions of global inflation offer a variety of difficulties to society. These issues include increased expenses of living, diminished buying power, and the possibility of economic instability.

On the other hand, the war in Ukraine and the failing economy that followed the pandemic have helped to shape the global economy during a hard moment, which has stimulated the expansion of emerging nations all over the globe. Inflationary pressures have also been felt in Bangladesh, a country that is relatively new to the contemporary economy, throughout course of the last year.

Nevertheless, Bangladesh is effectively addressing the difficulties of inflation in public life on a regional and global scale, which is paving the way for a prosperous future for the economy of Bangladesh.

As a result, the year 2023 is anticipated to be the determining year, which is the year in which the global economy could perhaps have a chance to start the route to recovery from the inflation pandemic. On the other hand, Bangladesh is taking this year extremely seriously in order to develop a strong economic posture in order to limit the dangers of major inflationary catastrophes.

In addition, it is anticipated that worldwide inflation would decrease this year; nonetheless, even by the year 2024, estimated average annual headline and core inflation will still be above pre-pandemic levels in over 80% of nations.

The inflation story of Bangladesh and world (2022)

 The year 2022 begins with a bright outlook for Bangladesh, as the nation is finally making progress on eradicating COVID-19 and advancing towards positive economic development. This indicates well for the country’s future. Even though the government will increase the price of energy in November 2021, the inflation rate for the first two months of 2021 is still expected to remain within normal ranges.

But the war in Ukraine has reversed the good trend, and from March 2022, the economy of Bangladesh began to suffer a higher inflation rate. This was due to the fact that inflation has been rising. The rate of inflation remained on an upward trend through the months of August and September (9.5) 2022; but, beginning in September 2022 and continuing through January 2023, the rate of inflation began to decline; this is an illustration of the responsible management of a nation’s economy.

– S. M. Saifee Islam is a Research Associate at the KRF Center for Bangladesh and Global Affairs (CBGA).

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