Surging demand for commodities during Ramadan may further fuel the inflationary pressure, which is unlikely to ease in next couple of months, Bangladesh Bank governor Salehuddin Ahmed has said. He, however, hoped that the inflation rate would start declining after aman harvest, which is at least two months away.

The central bank governor made the observations after a certificate giving ceremony at the Dhaka chamber auditorium on August 30. International Chamber of Commerce-Bangladesh has awarded 10 bankers with certified documentary credit specialist certification. ICCB president Mahbubur Rahman and Citibank NA Bangladesh CEO Mamun Rashid spoke on the occasion, attended, among others, by business leaders Latifur Rahman, Aftab Ul Islam and R Maksud Khan.

The point-to-point inflation again soared to double–digit figure in June after easing to 7.44 per cent in May. June inflation was 10.04 per cent, according to Bangladesh Bureau of Statistics. The inflation rate had remained above the double-digit mark from July last year and reached close to 12 per cent in December 2007, before it went down to 7.66 per cent in April.

The interim government has announced a number of market intervention and monitoring measures to check commodity prices from further spiralling at least in Ramadan, the month of fasting. But the local commodity market appears to have ignored all precautionary measures as major essential items have already seen fresh rises with Ramadan just a couple of days away.

Salehuddin Ahmed said there had been enough supplies of puffed rice, chickpea, pulses, onion, powdered pulse and spices to meet the demand in Ramadan. The country’s export-import trades are now more balanced than in the past, he said. The central bank is now working on amendment to the foreign exchange rules and regulation act 1947 to help the country’s businesspeople and travellers, he added.

The central bank chief said commercial bank officials needed to have a thorough understanding of the international trade practices and laws to expedite the country’s external trade. CEO of Citibank NA Mamum Rashid said the efficiency of Bangladeshi bankers was no less than that of South Asian bankers.