High inflation is constraining Bangladesh’s recovery. In FY2024 the economy saw nearly 10% average inflation, peaking at almost 12% mid-year. By mid-2025 it has come down (around 9% in May 2025), but core prices remain elevated. This makes life harder for consumers and forces policymakers into tough choices: raising interest rates slows growth, while looser policy risks fueling more inflation. Globally, advanced economies expect inflation to fall back toward 3–4% by 2026, but many emerging economies (including Bangladesh) still face stubborn price pressures. Containing inflation will require coordinated action. The IMF emphasizes a “tight monetary policy stance” along with fiscal consolidation to restore balance. If successful, this will stabilize expectations, support real incomes, and clear the way for more sustainable growth.