The government is likely to fix the national average inflation target for the next fiscal (2014-15) at 6.0 per cent, 1.0 per cent lower than that of the current fiscal year.
The government earlier had set average inflation target for the current fiscal year at 7.0 per cent although it has remained well above the target until now.
The average inflation during the last eight months stood at more than 7.5 per cent, according to Bangladesh Bureau of Statistics (BBS).
The ministry of finance is likely to finalise the inflation-related projection for the next fiscal at its next meeting to be held sometime this month (March), sources said.
The target for inflation for the next fiscal year will be announced in the national budget speech of the Finance Minister in June next.
Sources said they are expecting low inflationary pressures next year as all forecasts relating to prices of goods both at home and abroad point to a fall in the next fiscal year.
They also expect a peaceful environment in the country as far as politics is concerned in the next fiscal.
Official sources blamed restive politics for spike in inflation in the last few months of the calendar year 2013.
"We're still hopeful about achieving the national average at the end of the current fiscal," said a senior official at the finance division.
He said the target for the fiscal year 2015 is achievable if there is no supply chain disruption and sharp rise in prices of goods in the international market.
The prices of goods in the international market remained favourable in recent months. However, high inflation rate prevailing in India might affect the country's inflation, an official told the FE.
"High inflationary pressure in India does also affect the price situation in Bangladesh," he noted.
Source: The Financial Express
