The rate of point-to-point inflation in urban areas last month jumped to 6.48 per cent, the highest in 11 months since June last year, the official data showed.
The month-on-month inflation rate in urban areas increased by 0.78 percentage point in May last from 5.70 per cent in April, Bangladesh Bureau of Statistics (BBS) data showed on Monday.
The point-to-point inflation in urban areas was 6.49 per cent in June last year. However, inflation started easing from the next month — July, 2017.
In contrast to the rise in urban areas, inflation dropped in the rural areas during the period under review.
The rate of inflation in rural areas fell by 0.52 percentage point to 5.07 per cent in May from the level of the previous month.
The point-to-point inflation rate across the country (general) declined by 5.57 per cent in May from that of 5.63 per cent in April, the official data showed.
As per the BBS data, the point-to-point inflation was recorded at 5.76 per cent in May, 2017.
World Bank (WB) Lead Economist Dr Zahid Hussain said since the Bangladesh Taka depreciated significantly over the last few months, the cost of import of many items, mostly consumed by the urban people, has gone up.
"Besides, private sector credit growth and the rise in remittance inflow might have contributed to the inflationary pressure in the urban areas," he told the FE.
"The prices of food, especially that of rice, did not record any decline in the urban areas last month.
The prices of the main staple declined in the rural areas because of the Boro rice harvest. This has led to lower inflationary pressure in rural areas," Dr Hussain added.
The general inflation data compiled by the BBS showed that the food inflation in the country declined in May compared to that of the previous month while the non-food inflation had gone up.
The food inflation decreased by 0.47 percentage point to 6.56 per cent in May this year from that of 7.03 per cent in April.
But the non-food inflation increased to 4.08 per cent last month from that of 3.49 per cent in April, the BBS said.
The BBS also unveiled the wage index data where it showed that it grew at the rate of 6.37 per cent last month.
The index expanded at 6.42 per cent in the previous month of April this year.
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