Monthly Economic Update: Food Prices and Inflation Trajectory

Bangladesh has been experiencing a rising trend of food inflation in recent months at the backdrop of global hike of food grain prices. The food price rises created a range of macro-vulnerabilities in the country. One aspect is the impact on domestic food inflation and overall inflation. This rising food inflation has a severe impact over the marginalized people. The causes and consequences of recent food inflation is analysed below. This issue of the Bangladesh Economic Update attempts to investigate three major indicators of the economy. These are: food inflation, general inflation and impacts of world food price in Bangladesh. The update then provides an assessment on the impact of food inflation with poverty and inequality. The Update also reviews the past record of the inflation and makes a forecast on the possible movement of inflation.