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Bangladesh Stuck in World Bank's High Food Inflation "Red Zone" for 3 Years

Bangladesh continues to be classified in the World Bank's high-risk "red" category for food inflation, a status it has held for nearly three years. Despite some government measures, food inflation has risen over the past five months, reaching 9.3% in February—the highest rate in 13 months. Economist Selim Raihan warns the prolonged Middle East crisis could worsen the situation by disrupting imports and further driving up prices. The report notes that poor households, who spend up to two-thirds of their income on food, are being hit the hardest.

Key Points: Bangladesh's High Food Inflation in World Bank Red Category

  • Stuck in "red" category for ~3 years
  • Food inflation at 13-month high
  • Middle East crisis threatens imports
  • 13 other countries also flagged
  • Poor households spend up to 2/3 income on food
2 min read

Bangladesh listed in World Bank's 'red' category for high food inflation

Bangladesh remains in World Bank's high-risk "red" category for food inflation, with prices hitting a 13-month high amid Middle East crisis concerns.

"The increase in food inflation is quite concerning. - Selim Raihan"

New Delhi, March 24

Bangladesh has been unable to exit the "red" category of countries, which face a risk of food inflation, for almost three years, and although overall inflation decreased somewhat due to various interim government initiatives, food inflation has increased again over the last five months, according to a report in the Bangladeshi media.

A recently published World Bank report highlighted Bangladesh's ''red'' status due to the high food inflation in the country over the last 10 months. This means that the risk of food insecurity in Bangladesh is not decreasing and could increase further due to the Middle East crisis, according to a report in Dhaka's Prothom Alo newspaper.

Apart from Bangladesh, 13 other countries have been in the red category for 10 months. These countries are Ethiopia, Mozambique, Angola, Ghana, Mongolia, Nigeria, Tunisia, Ukraine, Zambia, Belarus, Kazakhstan, Moldova, and Russia.

Selim Raihan, Executive Director of the private research institute South Asian Network on Economic Modelling (SANEM), told Prothom Alo that the increase in food inflation is quite concerning. If the Middle East crisis prolongs, it will affect the country's imports, which could increase inflation.

Raihan also noted that compared to neighbouring countries, Bangladesh has been quite unsuccessful in reducing inflation. According to government agencies, the inflation rate is between 8.5 per cent and 9 per cent, but in reality, inflation is even higher, the report observed.

The Bangladesh Bureau of Statistics (BBS) provided inflation data up to February, while the World Bank report covered up to last November. According to BBS, food inflation in February was 9.3 per cent, the highest in 13 months.

Food inflation has been significantly high for more than three years. Previously, the poor and people with limited income hadn't experienced such prolonged hardship.

A large portion of the poor people's income goes to buying food, sometimes up to two-thirds, and they are hit hardest during inflation.

Other countries on the World Bank list of high food inflation have moved between red, purple, yellow, and green categories over the past year. Some have improved their food inflation situation, while others have worsened.

- IANS

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Reader Comments

R
Rohit P
Seeing Bangladesh in the same category as war-torn Ukraine and Russia is shocking. It shows how global crises like the one in the Middle East can destabilize economies far away. We must ensure our supply chains are robust.
A
Aman W
The report says they've been in the red for almost 3 years! That's a policy failure, no doubt. When two-thirds of a poor family's income goes to food, even a small price rise is a disaster. Their government needs to act, not just release statistics.
S
Sarah B
As someone who has worked in development, this is a stark reminder that economic growth numbers don't tell the full story. If basic food is unaffordable, the progress is hollow. Hope international agencies step up support.
V
Vikram M
It's a lesson for India too. We have to protect our farmers and ensure buffer stocks. Geopolitical tensions can disrupt everything. Jai Kisan! 🇮🇳
K
Kriti O
The expert said they've been "quite unsuccessful" compared to neighbours. That's a polite way of putting it. Hats off to our RBI and government for managing our inflation relatively better, though tomatoes still give me a heart attack sometimes! 😅

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