State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
1. Introduction
☐ Bangladesh has experienced inflationary pressure since the early phase of the pandemic (June
2020) that has continued in the later phase of the pandemic (2021).
8.00
7.00
➤ Such inflation caused a significant adverse impact on consumers and, particularly, low-
income households (The World Bank, 2021).
It would further push nutritional deficiency particularly of children of low-income
households and even rise in poverty.
It has led to erosion of purchasing power and the consequent higher level of burden on
household expenditure (CAB).
This section examines the nature and extent of recent inflation and factors responsible for this
inflationary pressure.
Figure: General inflation & food inflation and the cost of living
Point to point inflation (general and food inflation)
Inflation (General)
-Inflation (Food)
7.34
Water
Gas
Towel
Cloth (imported)
Petroleum
Fruits 2
Cow milk
Changes in Essential Goods and Services and their Implications
on Overall Household Expenditure
■Changes in cost of living due to
changes in prices
■Changes in prices
6.00 5.62
5.00 5.42
4.00
6.44
5.59
5.21
Soap 2
Tea
Salt
Spices 2
Egg
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Meat
Ghee & Dalda
Oil 1
Wheat
Rice 1
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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