Inflation drops to 8.5yr low
Inflation dropped to 5.02 % in January, the lowest in eight and a half years, on the trunk of the arrival of wintertime fruit and vegetables that contributed to the consumer price decline, official statistics showed yesterday.
This is the third straight month of overall consumer price decline.
In December, inflation, a way of measuring changes in the costs of a basket of commodities and services, was 5.29 per cent, according to the Bangladesh Bureau of Statistics (BBS).
A good decline in the price tag on non-meals items also contributed to the fall in the entire inflation, easing pressure on the wallets of customers. Numerous the population, especially the indegent and low-income groups, nonetheless suffer for the huge price of coarse rice.
The price of coarse grain, a benchmark followed by policy-manufacturers, was Tk 44 to Tk 48 each kilogram on January 31, down 3.16 per cent from Tk 45 to Tk 50 on the last day of 2020, data published by the Trading Corporation of Bangladesh showed.
"Inflation depends largely on food prices. And there is strain on the rates of rice and the purchase price may upsurge in the coming days," said Khan Ahmed Sayeed Murshid, director-standard of the Bangladesh Institute of Expansion Studies.
He said keeping the price tag on rice steady would be necessary to stabilise inflation.
Inflation had continued the upward pattern between July and October because of a price hike of rice and vegetables found in the wake of crops damaged by floods and rains.
Food inflation began to lower since November, decreasing the general inflation.
Non-foodstuff inflation declined to 4.69 % in January from 5.21 % in December, BBS data showed. Consumer rates dropped in both rural and urban areas during the period.
However, inflation could see plenty of pressure in the approaching months because of a general price rise globally, said the Bangladesh Lender on Tuesday.
The central bank said it analysed the commodity and food price indexes of the World Bank and the meals and Agriculture Organisation and added that global inflation might rise soon.
"Therefore, inflation may face a bit pressure soon," said the BB.
The World Lender said commodity prices continued to surge in January with energy commodities jumping 10 % and non-energy commodities rising 4.4 per cent.
In December, energy and non-energy commodities rose 15.2 % and 5.2 % respectively. Agriculture commodities rose 5 %, metals and minerals 3.2 % and valuable metals 1.1 per cent.
The BB has set a 5.4 % inflation target in today's fiscal year.
