The Bangladesh government has set an annual average inflation target of 6.5% for the fiscal year 2025–26 (FY26). This target is part of the budget announced in June 2025, which prioritized tightening monetary policy and controlling food inflation to stabilize the economy.
Key details of the FY26 inflation target:
- Targeted Rate: 6.5% on average.
- Point-to-Point Goal: The government aimed for a 6.0% point-to-point inflation rate by June 2026.
- Context: The target was set amid high inflation, with the aim of reducing it from over 9% in early 2025.
- Policy Support: The Bangladesh Bank maintained a strict, tight monetary policy, including keeping the policy rate high (10%) to achieve this goal.
While early projections suggested a 6.5% average, some reports indicated that keeping inflation below 7% by June 2026 is considered a significant achievement.