The government has set inflation target at 5.8 percent in fiscal year (FY) 2016-2017.
"There is a likelihood that prices of commodities including oil in international market will continue to decline in the coming year also. Meanwhile, we have slightly slashed down prices of fuel for the domestic market, which is expected to reduce non-food inflation. Further downward adjustment of fuel prices is likely to continue," said finance minister Abul Maal Abdul Muhith while placing the national budget in the Jatiya Sangsad today.
"Side by side, prospects of persistent agricultural growth and improvement in domestic distribution system will help contain food inflation at a tolerable level," he noted.
Muhith said: "In addition, in terms of macroeconomic management, we will ensure continued harmonization of fiscal and monetary policies."
The government had set inflation target at 6.2 percent in the outgoing(current fiscal)fiscal 2015-2016.
In his speech, the finance minister said, till April of current fiscal year, 12-month average inflation rate stood at 6.00 percent compared to 6.6 percent over the same period of last year. Point- to- point inflation rate also declined to 5.6 from 6.3 percent in the last year.
"Inflation has declined mainly due to satisfactory agricultural production, reduction of commodity prices including fuel in the international market, prudent macroeconomic management and normal flow of supply of goods thanks to political stability," added the minister.