Meals inflation tumbles to 42-month low in February
Foodstuff inflation fell to a good 42-month low of 4.97 per cent in February, helped by easing off pressures on some items such as rice and onions lately, official figures showed yesterday.
Due to this fact, overall inflation dropped to a 12-month low of 5.46 % last month, regarding to info from the Bangladesh Bureau of Statistics (BBS).
"This is a good piece of news," said Setting up Minister MA Mannan, while releasing the monthly figures of the Consumer Price tag Index (CPI) at the look ministry in Dhaka.
It had been apprehended that inflation might go up in February as a result of social happenings such as for example picnics and weddings. But the supply aspect was uninterrupted as the value of onion declined, he added.
In February, food inflation was down 15 basis points from per month previous and non-food inflation, which encompass common rates of clothing and footwear to move and communication, dropped seven basis points to 6.23 %.
Together, the two contributed to the 11 basis point-fall in overall inflation. Food inflation was the cheapest since September 2016.
Overall, inflation was the lowest since March last year and was slightly below than the Bangladesh Bank focus on for the existing fiscal time. In January, inflation stood at 5.57 per cent.
Following volatility in rates of some food items such as onions towards the end of last year and some pressure in rice rates, food prices overall may actually have been relatively steady in February.
"Food supply chains didn't suffer any key disruption. Weak individual sector credit growth may also have helped. Even so, non-food inflation is huge," explained Zahid Hussain, a ex - lead economist of the Environment Bank business office in Dhaka.
There is a threat of rising food and non-food inflation as a result of direct and knock-in ramifications of the recent upsurge in electricity prices, disruption of import supply chain, from China in particular, as a result of the coronavirus and increased demand as Ramadan approaches.
"The Bangladesh Lender has taken some measures to guarantee the adequacy of the supplies of essentials. Their vigilance must continue," he added.
At the same time when people are grappling with high rates of many daily essentials, the federal government recently hiked the energy tariff by 5.3 %. The new level will need effect from Sunday.
In rural areas, inflation slid eight basis points to 5.44 %, helped by seven basis tips fall in food inflation and 10 basis details decline in non-food inflation.
In urban areas, general inflation was down 19 basis points to 5.48 %, aided by 33 basis factors slip in food inflation and five basis tips down in non-food inflation.
It appears that the prices of vegetables such as for example potato, eggplant, carrot, cucumber, tomato, radish, cauliflower, cabbage and crimson spinach and spices such as onions, garlic and ginger fell found in February compared with January, according to a good news release of the BBS.
The non-food inflation fell last month after soaring 6.30 % in January, the best since December 2015.
The statistical agency calculates CPI predicated on the costs of 318 goods and services in rural areas and 422 commodities in cities. It computes the CPI at the countrywide level by combining the urban and rural indices applying weight factors.
The overall growth of nominal wages was 6.51 %, down from 6.56 % in January, the BBS said.
The wage in the making and services sectors was slightly up at 6.14 % and 6.52 %, from 6.15 per cent and 6.52 % respectively, while that in the agriculture sector fell to 6.65 % from 6.74 % a month ago.
On the other hand, the wages in agriculture, manufacturing and products and services sectors grew at an increased pace than inflation, according to BBS's Wage Rate Index.
The federal government has targeted a 5.5 per cent inflation rate in today's fiscal year. It had been able to own it at 5.48 % go on fiscal year, which is comfortably below the target of 5.6 percent.
