TDS Desk:

Finance Adviser Dr Salehuddin Ahmed announced a target to maintain inflation at 6.5 per cent for the 2025-26 fiscal year budget, emphasising price control as the top priority.

The budget speech was broadcast on Monday, June 2, 2025, at 3 PM on Bangladesh Television, with simultaneous airing on private television channels and radio stations.

INFLATION CONTROL MEASURES

In his speech, Dr Salehuddin highlighted the current Inflation context saying Inflation has been high, ranging between 9-10% in recent months. The interim government, since assuming office in August 2024, has prioritized controlling this “uncontrolled inflation.”

MONETARY AND FISCAL POLICIES:

A contractionary monetary policy has been adopted, increasing the policy interest rate by 150 basis points to 10%.

A contractionary fiscal policy has reduced unnecessary government expenditure, significantly lowering overall spending.

IMPACT ON INFLATION:

Point-to-point inflation decreased from 10.89% in December 2024 to 9.17% in April 2025.

The daily commodities market remained stable during Ramadan 2025, described as historically stable.

Projections indicate inflation could drop to 8% by June 2025 if current trends persist.

ECONOMIC TRADE-OFFS

Salehuddin noted that efforts to curb inflation may result in a slightly lower GDP growth rate compared to previous years, reflecting the trade-off between inflation control and economic expansion.

IMPLICATIONS

The budget’s focus on reducing inflation to 6.5% through stringent monetary and fiscal measures aims to stabilise prices and improve affordability for citizens. The observed decline in inflation and market stability during Ramadan signal early success, though sustained efforts will be critical to meeting the target.