Bangladesh is eyeing a robust economic growth on government measures to ensure flow of money amid the coronavirus crisis, but easy funds from the stimulus packages have triggered fears of inflation. The central bank suggested active vigilance and policy tuning to balance between growth recovery and price stability. Though food inflation witnessed a notable rise during the quarter, non-food inflation moderated because of subdued demand of elastic items. Rice prices, however, remained the single largest contributor to food inflation throughout the quarter, the Bangladesh Bank noted. “In addition to these, the increased flow of money into market from the stimulus packages has created fears of further inflation,” he added.

Source: bd News24 September 30, 2020 13:52 UTC