Bangladesh Faces Rising Inflation Concerns as Winter Approaches
Bangladesh may see increased inflation this winter due to rising oil prices and agricultural costs, impacting food prices and vulnerable families.
Mumbai, October 31 (Daily Kiran) : As winter approaches, Bangladesh is bracing for a potential surge in inflation. A recent report from The Daily Star highlights concerns that rising global oil prices and increased agricultural production costs could lead to higher food prices in the country.
Economists are urging the government to bolster social security programs to protect low-income families from the effects of rising inflation. They have emphasized the need for improved market management and equitable distribution of economic growth benefits. Families already struggling with economic pressures may be forced to sell assets like gold and jewelry or take on debt to meet their daily needs. This situation affects many households that are not officially recognized in poverty statistics.
During a discussion organized by a civil society forum, AKM Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS), warned policymakers against assuming that economic conditions will improve soon. He stressed the importance of preparing for a potential worsening of the situation. The increase in oil prices has driven up costs for fertilizers, pesticides, and other agricultural resources, effectively doubling production costs and raising alarms about food prices.
Haque also called for a review of the public food distribution system, particularly focusing on rural families who face seasonal income uncertainty. He pointed out that the proportion of indebted families in rural areas has reached 51%, compared to 32% in metropolitan areas and 40% in other urban regions. He cautioned that if government assistance remains concentrated in urban areas, rural families—who experience greater economic pressure—will be left without support.
He advocated for stronger market monitoring and improvements in the supply chain, noting that simply establishing a price commission will not resolve the underlying issues if the market system fails to operate effectively. Professor Sayma Haque Bidisha from Dhaka University echoed these sentiments, stating that if economic growth does not reduce inequality and involve all sectors, food security cannot be guaranteed, nor can the general populace benefit from development. She also highlighted the need for a minimum wage policy for workers in various sectors, especially those in the informal economy.
Meanwhile, another recent report indicates that Bangladesh’s economy is grappling with three major challenges: sluggish economic growth, a rising trade deficit, and significant weaknesses in the banking sector. According to World Bank data, the country’s economic growth rate is projected to drop to 3.4% for the fiscal year 2025-26, with expectations of remaining at this level for 2026-27—far below the government’s target of 6.5%.
