High Inflation Impact On Low Income People | Economic disaster averted but inflation leaves poor struggling: CPD

The Centre for Policy Dialogue (CPD) today said that a major economic disaster was averted following the takeover of the interim government, but poor and low-income groups continued to suffer amid high inflation.

“Achieving economic stabilisation and recovery was one of the exigencies of the time,” said Executive Director Fahmida Khatun at a dialogue on 365 Days of the Interim Government at the Lakeshore Hotel in Dhaka.

She said citizens had high expectations regarding the restoration of democratic processes, the reform of state institutions, and the stabilisation of the economy, as the interim government had inherited a fragile economy suffering from slow growth.

The economy is stabilising gradually, and risks are receding.”This is one of the biggest achievements,” she said.

The CPD said it is unlikely that the interim government will pursue a fresh set of reforms, given that the national elections are due in February 2026.

“Hence, consolidating the achievements so far and addressing the underlying fragility of the economy should receive due importance,” said Fahmida.

She noted that there had been sluggishness in reform activities.

The independent think-tank used a scorecard with green, yellow, and red indicators against 38 issues. Of these, it identified nine issues as green.

Citing the recommendations of the white paper panel and the task force on restrategising the economy, it said that to date, no concrete initiatives have been undertaken, and the recommendations outlined in both reports have not yet been implemented.