Inflation expected to fall to 7% by September: BB Governor
Published: 04 June 2025, 1:38:02
Bangladesh Bank (BB) Governor Dr. Ahsan H. Mansur has expressed optimism that the country’s inflation rate will decline to 7% by September this year.
Speaking at a post-budget press conference held Tuesday at Osmani Memorial Auditorium in Dhaka, the newly appointed governor said inflationary pressures are easing, and if the trend continues, interest rates may also be reduced.
“One of the biggest challenges to controlling inflation was the exchange rate,” Dr. Mansur said. “Had we failed to stabilize it, prices would have surged further. Fortunately, we’ve brought it under control. Even after allowing market-based exchange rate adjustments, there hasn’t been much volatility, which has helped restore confidence. Inflation is now moving in the right direction.”
He noted that food inflation, which previously stood at 14.5%, has now declined to around 8.5%. Non-food inflation remains slightly higher but has dropped below 10%, with further improvement expected in the coming months.
“Global prices of food, oil, and gas are on a downward trend, and we are adopting a contractionary monetary policy,” Dr. Mansur added. “Given these factors, we are hopeful that inflation will fall to around 7% between July and September.”
The press conference was attended by several top economic and financial officials, including: Finance Adviser Dr. Salehuddin Ahmed, Education and Planning Adviser Dr. Wahiduddin Mahmud, Power, Energy, Infrastructure, and Transport Adviser Muhammad Fauzul Kabir Khan, Home and Agriculture Adviser Md. Jahangir Alam Chowdhury, Trade, Civil Aviation, and Textiles Adviser Sheikh Bashir Uddin, Cabinet Secretary Sheikh Abdur Rashid, National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan.
Dr. Mansur, who recently assumed office as governor, joined the press briefing alongside these key figures.
On Monday evening, Economic Adviser Dr. Salehuddin Ahmed unveiled the proposed budget for fiscal year 2025–26 in a simultaneous broadcast on state-owned BTV and several private media outlets. This marks the first budget presented by the current interim government.
The proposed budget is set at Tk 7.9 trillion, down Tk 70 billion from the current fiscal year’s original allocation of Tk 7.97 trillion. This is the first time in Bangladesh’s history that the national budget has seen a reduction in overall size.
