Annual inflation hits 12-year high despite easing in June

The annual average price spike in Bangladesh surged to its highest level in 12 years in the just-concluded fiscal year despite easing in June, reflecting the persistent erosion of real income and the deterioration of the living standards of low-income groups. Annual inflation rose to 9.73 percent in 2023-24, the highest since 2011-12 when it was 10.62 percent, overshooting the government’s target of containing it to 7.5 percent, according to the Bangladesh Bureau of Statistics (BBS). Inflation has persisted over 9 percent since March 2023. And except for monthly fluctuations, the rate has crossed 9.5 percent since January. In June, inflation declined to 9.72 percent from 9.89 percent in May thanks to the decline in food and non-food prices. Inflation was 9.74 percent in April. Food inflation slipped to 10.42 percent last month from 10.76 percent a month ago. The non-food price growth slowed to 9.15 percent from 9.19 percent. The government distributed 32.6 lakh tonnes of foodgrains in the last fiscal year, an increase of 13 percent from a year ago.

Source: https://www.thedailystar.net/business/news/annual-inflation-hits-12-year-high-despite-easing-june-3651506

Processed food industry grew 8% annually since 2005

Bangladesh’s $8 billion food processing industry has annually grown by 8 percent on an average between 2005 and 2023, powered by rising middle-class and urban consumer demand for convenience, said the US Department of Agriculture (USDA). Bangladesh’s modern food retail industry has approximately 40 companies with over 750 outlets. From 2015 to 2023, the annual turnover for members of the Bangladesh Supermarket Owners Association grew from around $200 million to $350 million. The USDA report said Bangladesh’s import of consumer-oriented food products increased from $1.7 billion in 2019 to $2 billion in 2022. However, import of consumer-oriented foods declined slightly to $1.99 billion in 2023. The report said the US was Bangladesh’s 17th largest supplier in 2022, but in 2023, its position rose two spots to 15th. This represents an 80 percent increase in its exports year-on-year to $17.1 million in 2023. However, the value of consumer-oriented product exports from the US makes up less than one percent of its total agricultural exports to Bangladesh. Shipment of agricultural products from America fell 17 percent year-on-year to $781 million in 2023.

Source: https://www.thedailystar.net/business/news/processed-food-industry-grew-8-annually-2005-3651481

Large corporates pay 11.31pc higher

Large corporates paid 11.31-percent higher taxes in the just-concluded financial year due to some fiscal measures and some banks’ higher operating profits, yet taxmen failed their annual target. The large taxpayers’ unit (LTU) under the income-tax wing of the revenue board collected Tk 287.82 billion in direct taxes last year against Tk 258.58 billion in FY 23, provisional data of the National Board of Revenue (NBR) showed. However, the annual tax collection had lagged behind the target by Tk 42.18 billion until June 30, 2024. Tax-collection target for LTU from income tax was Tk 330 billion for the just-concluded financial year. Tax-collection target for LTU from income tax was Tk 330 billion for the just-concluded financial year. Source-tax collection from contractors and sub-contractors was the largest source of LTU’s tax receipt followed by bills in Bangladesh Bank, and salaries. LTU’s tax collection turned onto positive trajectory in the last three years. It had marked a negative 1.40- percent growth in FY 2021-22. Banking sector contributes a major share of around 36 per cent in LTU’s revenue followed by mobile-phone companies 11 per cent and tobacco manufacturing 5.0 per cent.

Source: https://today.thefinancialexpress.com.bd/first-page/large-corporates-pay-1131pc-higher-yet-taxmen-fail-target-in-fy24-1720375643

With paperless shipping, BD could earn $0.6b more in exports

Imagine you are a cargo owner in 1450. You hand over your goods to a ship and receive a bill of lading — a paper document detailing your shipment. Fast forward to 2024: despite a dramatically changed world, the bill of lading process remains reliant on physical paperwork, used in roughly 40 per cent of containerised trade. According to a UN expert, Bangladesh could earn $0.6 billion more annually, as the electronic bills of lading could unlock $30-40 billion in global trade volume if these processes went digital. Citing a McKinsey study, the ICCB president said that 100 per cent adoption of electronic bills of lading could unlock $30-$40 billion in global trade by reducing trade friction. He said this shift could also save 28,000 trees annually and cut carbon emissions. Bangladesh ratified the UNESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade in 2020. The roundtable on Sunday marked the first step in introducing the Digital Standards Initiative (DSI), with plans to draft rules and regulations aligned with global digitalization trends by 2027.

Source: https://today.thefinancialexpress.com.bd/trade-market/with-paperless-shipping-bd-could-earn-06b-more-in-exports-1720373505

EBL awarded ‘Best Climate Focus Bank’

Ali Reza Iftekhar, managing director of EBL receives the ‘Best Climate Focus Bank’ award from Lutfor Rahman, executive director of GreenTech Foundation, at the bank’s head office in Dhaka. AQM Kibria, advisor, and Imrul Karim, director of finance of Greentech Foundation; EBL Additional Managing Director Ahmed Shaheen, Deputy Managing Director and Chief Risk Officer M. Khurshed Alam, and Head of Risk Management Division Saiful Islam were also present at the event.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/ebl-awarded-best-climate-focus-bank-1720374007

MTB receives Excellence in Consumer Financing Award

Mutual Trust Bank (MTB) has been honoured with the prestigious “Excellence in Consumer Financing Bangladesh 2024” award by Global Business Magazine. This prestigious accolade recognises MTB’s commitment to providing innovative and inclusive financial solutions tailored to meet the diverse needs of all segments of Bangladeshi society. At the core of MTB’s success is its “digital-first” philosophy, which emphasises fast, convenient, and cost-effective digital solutions for retail customers.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/mtb-receives-excellence-in-consumer-financing-award-1720373968

 Gold price increases by Tk1,603 per bhori

The Bangladesh Jewellers Association (Bajus) on 7^th July increased the price of gold by Tk1,603 per bhori, followed by a price hike in the local bullion market. As per new rate, per bhori 22-carat gold will cost Tk1,18,891, which was Tk1,17,288 till today. Apart from this, the price of 21-carat gold has been set at Tk1,13,491 per bhori and 18-carat gold at Tk97,278 per bhori. Besides, for the traditional method, the price of gold will be Tk80,423 per bhori. The new rate will be effective from Monday (8 July).

Source: https://www.tbsnews.net/bangladesh/gold-price-increases-tk1603-bhori-894221