July inflation hits 6-month high

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FE Report
The point-to-point inflation in July rose to 10.82 per cent, a six-month high, due to rise in fuel prices in the domestic market, officials said Thursday.
The caretaker government in late June raised oil price by 34-37 per cent that resulted in the increase of in non-food inflation in rural areas at 6.32 per cent and in urban areas at 4.89 per cent.
"This has led July inflation to six-month high," said a senior Bangladesh Bureau of Statistics (BBS) official on condition of anonymity.
The country experienced 10.16 per cent inflation in February last.
The price hike of oil products, especially that of diesel and kerosene, had an adverse effect on the rural people, he added.
The country consumes about 3.7 million tonnes of oils annually with diesel and kerosene accounting for almost 80 per cent, which are mostly consumed in the rural areas.
The BBS officials said point-to-point inflation is higher in rural areas than urban areas in July as it recorded at 11.19 per cent in rural areas compared to 9.91 per cent in urban areas.
Food inflation was, however, lower in rural than urban areas as the rice price fell in the rural area during that month and milk price went up in the urban areas.
Rice and milk carry much weight in the country consumer price index fixed in 1995-96, they said.
The BBS officials said the inflation is expected to come down in the coming months due to price fall in commodities like rice, wheat, edible oil in the international and local market.
The price of rice, wheat, and edible oil declined at least 10 per cent in the local market during the last one month.
The government has planned to cut oil price in the local market after more than 30 per cent fall over the price of per barrel crude oil, which was at a record US$ 147 on July 11.