Bangladesh: The interim government lowers the import barrier as food inflation surpasses 12%

INN/Dhaka, @Infodeaofficial 

According to figures issued by the Bangladesh Bureau of Statistics (BBS) on Thursday, food inflation in Bangladesh increased from 10.40% in September to 12.66% in October, pushing overall inflation to 10.87%. The interim administration and central bank of Bangladesh announced fresh steps on Thursday, including easing lending and import regulations for commodity importers, in response to the extremely high level of food inflation.

In an effort to stabilise prices, the Bangladesh Bank would temporarily eliminate the letter of credit (LC) margin on necessities like sugar, chickpeas, and edible oil until Ramadan.

Following a meeting with Finance and Commerce Adviser Salehuddin Ahmed, Bangladesh Bank Governor Dr. Ahsan H. Mansur informed reporters that the central bank also intends to exclude commodities importers from the 25% single-borrower exposure limit in order to increase their import capacity.

According to the economists, structural problems including ineffective market structures and supply constraints are just as important as demand-driven inflation in Bangladesh. According to the economist, it is urgent to lower tariffs to encourage imports and enhance the supply chain to lessen food inflation.