Recent Inflation in Bangladesh: Trends, Determinants and Impact on Poverty

This volume, published as the IRBD thematic issue for 2007-08, captures the findings of two studies, completed under the IRBD programme by the CPD on inflation in Bangladesh. As is known, price hike of essential commodities throughout FY2006-07 and FY2007-08, and earlier part of FY2008-09 has been a major concern in Bangladesh, both for the policymakers and the public at large. In March-June period of 2007, CPD carried out a study titled Price of Essential Commodities: A Diagnostic Study of Recent Trends to investigate the underlying factors contributing to inflation in Bangladesh which was gradually gaining momentum at that time. Based on the value chain analyses of a number of essential items, the CPD study identified the key reasons (both domestic and international) which fueled the inflationary pressure, and put forward suggestions for the government. To examine further developments, CPD conducted another study as a follow-up of the aforesaid diagnostic study, which was titled Trends in Prices and Inflation: Impact on Real Income and Poverty in Bangladesh. This study tried to capture the trends at that time in aggregate inflation levels, and analysed movements in price levels of a number of essential items of consumption from a regional comparative perspective. Finally, various government interventions to address both causes and consequences of inflation were reviewed under this study.

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