Feb inflation lowest since '06

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FE Report
The point-to-point inflation was 5.81 per cent in February this year, lowest since 2006, thanks to fall in prices of food and other essentials.
It fell by 0.25 percentage points from January inflation.
According to the Bangladesh Bureau of Statistics (BBS), the inflation in February dropped sharply 4.35 percentage points from the torrid 10.16 per cent in the same period in 2008.
"Since the prices of different consumer items including food has had a massive fall in last few months both in domestic and foreign markets, the inflation has been coming down significantly," a BBS official said.
The point-to-point inflation swelled to double digit 10.10 per cent in July 2007.
The point-to-point inflation was had been maintaining its upward trend till September 2008 when it was 10.19 per cent.
The inflation has been falling since October last year when it stood at 7.26 per cent, a sharp fall by 2.93 percentage points from the previous month, BBS statistics showed.
The inflation maintained upward trend between mid-2007 and third quarter of 2008 due to high prices of rice, oil and other essential goods in the country.
The price of rice in the international market jumped to $1000 per tonnes in early 2008 from $300 to $350 per tonnes and the oil price soared to $147 per barrel in July last year.
Recurrent floods and devastating cyclone Sidr in last half of 2007 also fueled the inflation as the calamities damaged agricultural crops in the country affecting the food supply chain.
The rice prices in the local market fell by 25 to 40 per cent over the last six months from the peak Tk 34 to Tk 44 per kilogram in August-September period last year.
"We expect the inflation rate to come down to below 5.0 per cent as the impact of lower prices of different imported goods has started taking effect," the BBS official said.
The point-to-point inflation in February this year in the rural areas decreased to 6.11 per cent and in urban areas to 5.08 per cent from 6.39 per cent and 5.24 per cent respectively in January, BBS statistics said.