New Delhi, March 25: Reports from Bangladeshi media and a recent World Bank study indicate that Bangladesh has remained in the ‘red’ category for nearly three years. This classification highlights the high risk of food insecurity and inflation in the economy.
Despite various government efforts, overall inflation has seen a slight decline. However, food prices have surged again over the past five months.
According to Dhaka’s Prothom Alo newspaper, a recently published World Bank report has underscored Bangladesh’s ‘red’ status due to soaring food inflation over the last ten months. This situation suggests that the risk of food insecurity is not diminishing and could worsen due to the ongoing crisis in the Middle East.
In addition to Bangladesh, 13 other countries have also remained in the ‘red’ category for the past ten months. These nations include Ethiopia, Mozambique, Angola, Ghana, Mongolia, Nigeria, Tunisia, Ukraine, Zambia, Belarus, Kazakhstan, Moldova, and Russia.
Salim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM), expressed to Prothom Alo that the rise in food inflation is alarming. He warned that if the Middle East crisis continues, it could impact the country’s imports, further exacerbating inflation.
Raihan also noted that Bangladesh has struggled significantly to reduce inflation compared to its neighboring countries. Government agencies report an inflation rate between 8.5% and 9%, but the reality may be even higher.
The Bangladesh Bureau of Statistics (BBS) released inflation figures up to February, while the World Bank’s report is based on data from last November. According to BBS, food inflation reached 9.3% in February, marking the highest level in the past 13 months.
Food inflation has remained excessively high for the last three years. Previously, poor and low-income individuals did not have to endure such prolonged hardships.
A significant portion of low-income households’ income is spent on food. During inflationary periods, they are the most affected.
Countries listed by the World Bank with high food inflation have fluctuated between red, purple, yellow, and green categories over the past year. Some have improved their food inflation status, while others have seen conditions worsen.
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