Bangladesh's economy remains under pressure from persistent inflation, rising energy costs and structural weaknesses in the market system, according to Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD).
She said inflation continues to be one of the country's most pressing economic challenges.
She noted that inflation reached 9.04 percent in April, driven largely by rising costs in the energy, transport and service sectors.
"While prices continue to rise, wage growth has failed to keep pace with inflation," she said. "As a result, the purchasing power of ordinary citizens, particularly those with fixed and limited incomes, has declined significantly."
Dr Khatun pointed to substantial increases in fuel prices between December and May. During that period, diesel prices rose by around 15 percent, while petrol, octane and kerosene prices increased by nearly 20 percent.
According to her, the higher fuel costs quickly affected the transport sector, resulting in increased bus fares and freight charges. The higher cost of moving goods has subsequently added pressure on consumer prices.
She also highlighted the sharp rise in cooking gas prices. The price of a 12-kilogram LPG cylinder increased from Tk 1,341 in March to Tk 1,885 in June, representing an increase of more than 40 percent.
Beyond energy costs, Dr Khatun identified weaknesses in market management as another major factor contributing to inflation.
"The existence of numerous middlemen between producers and consumers frequently results in inflated retail prices," she said.
She argued that addressing inflation would require more than monetary and fiscal measures. According to her, reforms aimed at strengthening market governance, improving supply chains and ensuring greater transparency are essential to stabilising prices and protecting consumers.
She said tackling inflation effectively remains critical for restoring purchasing power and supporting economic recovery.
