Bangladesh

  I n 2025, Bangladesh confronted persistent inflationary pressures, significantly impacting household budgets. To alleviate this burden, the government implemented a zero Value Added Tax (VAT) policy on essential goods within supermarkets. This initiative aimed to directly reduce consumer costs amidst a challenging economic landscape characterized by fluctuating global commodity prices and domestic supply chain vulnerabilities. The primary driver for the VAT exemption was the sustained high inflation, particularly in food items. Data from the Bangladesh Bank indicated that while overall inflation showed marginal decreases, food inflation remained a significant concern. Contributing factors included global supply chain disruptions, the depreciation of the taka, and inherent challenges within the domestic agricultural sector. The government's decision to eliminate VAT on essentials in supermarkets was a direct response to these pressures, intending to provide immediate financial r...

Bangladesh need to concern the emerging inflation as prices of staples like rice are increasing since October last year, says a study by Centre for Policy Dialogue. It also says that outlook for the global recovery in the next half of the fiscal year signals that prices are expected to go up on the international market. The private research arm suggested boosting farm output by supplying enough inputs during the upcoming Boro crop season and maintain the spread of prices at different level import price, wholesale price, retail price and farm level. "Inflation can be contained by ensuring higher agricultural production or the other way is by importing food which would increase the subsidy burden," CPD executive director Mustafizur Rahman said on Monday. Inflation rate in the recent past has been tolerable, but since October there has been upward movements of prices, reads the report. The high growth in agricultural and industrial credit along with excess liquidity in the ...