It is safe to say that for the past few years, well before the fall of the previous administration, Bangladesh has been struggling with inflation -- an issue that certainly was brought about due to the negligence and callousness of the previous administration.
The interim government, to this end, must be appreciated for recognizing the importance of inflation control as soon as they came to power, and while we remain far away from bringing inflation under control, there has been progress made.
The recent statement by Bangladesh Bank Governor Ahsan H Mansur, highlighting a measurable decrease in both food and non-food inflation, is a welcome sign that the prudent policies undertaken by the interim government are beginning to show results.
Food inflation, which had soared to 14.5%, has reportedly dropped to 8.5%. Non-food inflation has similarly declined from 12.5% to 9%. The overall inflation rate, according to the Bangladesh Bureau of Statistics, fell to 9.17% in April, down from 9.35% the previous month.
These figures, while still high, signal a positive trajectory.
However, this is no time for complacency. The spectre of inflation remains, and the journey towards the targeted 4-5% rate will require continued vigilance and intelligent policymaking.
The ongoing structural reforms will play a major role and we must ensure they remain on track. In addition, there must also be careful fiscal management -- our financial sector continues to suffer and there is a need to ensure its revitalization if we are to remain on track.
Evidence-based policies can make a difference
This government has shown that determined, evidence-based policies can make a difference. What we must now do is sustain this momentum -- a responsibility that falls on this and every subsequent government.