TDS DESK:

The Centre for Policy Dialogue (CPD) on Friday claimed that the target set by the government for reducing inflation to 6.5 per cent in the fiscal year 2024-25, from the existing 9 per cent, is unrealistic.

“The proposed budget has set a target to reduce inflation to 6.5 per cent which was hovering over 9 per cent in May. The strategies for curbing inflation and providing relief to the poor and those on fixed incomes are insufficient,” CPD Executive Director Dr Fahmida Khatun said in a post-budget briefing at the Bangabandhu International Conference Center (BICC) in the capital on Friday morning.

She also said that they do not notice the activities of macroeconomic stability frames in the proposed budget.

The think-tank mentioned that in May, inflation increased to 9.89 per cent from 9.74 per cent in the previous month, with the annual average inflation standing at 9.73 per cent.

The CPD pointed out that in fiscal year 2023-24, the government had projected an 8 per cent inflation rate but the entire FY24 experienced inflation of more than 9 per cent.

After analyzing the scenario, the inflation projection for FY25 certainly seems overly ambitious, it said.

The think-tank noted that despite high inflation levels, duties have been reduced on only a few essential items in budgetary measures proposed by the government for the next fiscal year.

But it remains uncertain whether this reduction in duty will result in lower prices for consumers, it added.