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BB faces tough task to lower inflation after spike

FE Report | July 11, 2018 00:00:00


The central bank may face a challenge to bring down the average annual inflation to 5.6 per cent in the current fiscal year (FY) after it exceeded the target in the last fiscal.

The average annual inflation exceeded the government target of 5.5 per cent in FY 2017-18 mainly due to higher prices of food grains, according to Bangladesh Bank (BB) officials.

Now the BB and other concerned authorities would face a tough task to lower the inflation, they opined.

The inflation rose to 5.78 per cent in FY '18 on the annual average basis from 5.44 per cent a year before, according to the latest data of the Bangladesh Bureau of Statistics (BBS).

The figure was 5.92 per cent in FY '16.

Food inflation stood at 7.13 per cent in FY '18 as compared to 6.02 per cent in the previous fiscal.

On the other hand, non-food inflation came down to 3.74 per cent from 4.61 per cent.

"Prices of food grains, particularly rice, increased significantly in FY '18 following flashfloods and incessant rain in different parts of the country," a senior BB official explained.

The issue is expected to be discussed at today's (Wednesday) preparatory meeting of the next monetary policy with former finance ministers, former governors and senior economists, according to the BB official.

"A BB board of directors meeting will be held in the central bank on Sunday mainly to discuss issues concerning the next monetary policy statement (MPS)," another BB official told the FE.

He also said the BB might make clear its policy measures for curbing the inflationary pleasure on the economy in the upcoming MPS.

"Actually, the inflation depends on different factors, including commodity prices in the global market, weather, overall production and inflationary trend of close-door neighbours," the central banker explained.

On Monday, the BB started preparations for formulating its next MPS.

The BB is giving top priority to curbing the rising trend of inflation and helping the productive sectors achieve maximum economic growth.

siddique.islam@gmail.com


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COMPANY YCP HIGH LOW CLOSE %CHG
MLDYEING 41.0 45.1 41.0 45.1 10%
SONALIANSH 331.0 359.9 336.9 359.9 8.7311%
STYLECRAFT 930.6 1000.4 1000.4 1000.4 7.5005%
LIBRAINFU 1036.6 1101.3 1045.0 1101.3 6.2416%
PENINSULA 31.8 34.2 31.1 33.6 5.6604%
MONNOSTAF 4985.2 5234.4 5100.0 5234.4 4.9988%
POPULARLIF 105.5 114.0 106.1 109.8 4.0758%
AMBEEPHA 562.7 599.0 570.0 585.3 4.0163%
SAIHAMCOT 21.0 22.1 20.3 21.8 3.8095%
PHARMAID 584.2 615.8 582.0 606.3 3.783%
COMPANY YCP HIGH LOW CLOSE %CHG
MLDYEING 45.1 45.1 41.0 41.0 10%
VAMLBDMF1 8.5 8.5 7.8 7.8 8.9744%
SONALIANSH 359.9 359.9 336.9 337.9 6.5108%
PENINSULA 33.9 34.2 31.1 32.0 5.9375%
MERCINS 22.6 22.8 21.4 21.4 5.6075%
LIBRAINFU 1101.3 1101.3 1045.0 1045.0 5.3876%
SAIHAMCOT 22.0 22.1 20.3 21.0 4.7619%
DELTALIFE 113.0 114.9 108.3 108.3 4.3398%
PF1STMF 5.3 5.3 5.1 5.1 3.9216%
PHARMAID 609.7 615.8 582.0 587.2 3.8317%
COMPANY YCP HIGH LOW CLOSE %CHG
OAL 13.6 12.7 12.1 12.2 -10.2941%
SKTRIMS 43.1 44.4 38.9 39.3 -8.8167%
PRIMETEX 43.4 43.3 39.1 39.7 -8.5253%
SUMITPOWER 42.0 40.5 38.2 38.6 -8.0952%
INTECH 66.5 66.5 60.4 61.3 -7.8195%
INTRACO 33.4 34.4 30.4 30.9 -7.485%
IBP 32.5 32.8 29.9 30.1 -7.3846%
SAMATALETH 57.5 57.7 52.7 53.4 -7.1304%
NURANI 20.4 20.5 18.8 19.0 -6.8627%
ADVENT 44.0 42.2 40.5 41.1 -6.5909%
COMPANY YCP HIGH LOW CLOSE %CHG
MEGHNAPET 16.1 18.5 16.1 18.5 -12.973%
QUEENSOUTH 43.1 48.0 43.0 48.0 -10.2083%
DACCADYE 4.5 5.0 4.5 5.0 -10%
NORTHERN 820.0 905.0 815.3 897.5 -8.6351%
PRIMETEX 39.7 43.3 39.1 43.3 -8.3141%
SKTRIMS 39.8 44.4 38.9 43.4 -8.2949%
SAMATALETH 53.0 57.7 52.7 57.7 -8.1456%
INTECH 61.1 66.5 60.4 66.5 -8.1203%
SHASHADNIM 68.1 74.1 67.1 74.1 -8.0972%
FINEFOODS 43.1 47.2 43.0 46.5 -7.3118%