Dhaka, Bangladesh (BBN)– The government has targeted to curb the inflation at 7.5 percent in the fiscal 2012-13, expecting that falling commodity prices on the world market, increased food grain production domestically and higher foreign exchange supply will help ease inflation.
“Because of the outlook of declining trend in food prices in international market and satisfactory domestic agricultural production, we are expecting the food prices to settle at a tolerable level,” Finance Minister AMA Muhith said in his budget speech for the fiscal year (FY) 2012-13.
The increased supply of foreign exchange will keep the exchange rate stable, the finance minister added.
“As a result, inflation will moderate. Given this scenario, we are expecting to bring down inflation to 7.5 percent in the next fiscal year and to 5.0 percent in the medium term,” he noted.
To contain inflation, the minister said the government would continue monetary tightening along with fiscal consolidation.
BBN/SSR/AD-07June12-9:06 pm (BST)
