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Inflation down marginally in November

Overall inflation falls to 5.37pc


FE Report | December 05, 2018 00:00:00


The point-to-point inflation rate in the rural areas increased to 4.91 per cent last month (November) after continuous fall during the previous seven months, official data showed.

The Bangladesh Bureau of Statistics (BBS) data, unveiled on Tuesday, showed that the rate of overall inflation dropped marginally to 5.37 per cent last month. But, in the rural areas it reached 4.91 per cent in November from that of 4.87 per cent in October.

According to the BBS, the inflation in rural Bangladesh that fell continuously during seven months since April last went up in November.

The BBS data, however, showed that inflation in the urban areas declined in November after following an uptrend until October.

Planning Minister A H M Mustafa Kamal disclosed the inflation data at Planning Commission on Tuesday.

He said the point-to-point inflation decreased following smooth supply of essential items, including vegetables, rice and onion.

The BBS officials said the point-to-point inflation dropped to 5.37 per cent last month compared to that of 5.40 per cent in October, but the food inflation is rising.

According to the BBS data, food inflation rose to 5.29 per cent in November from 5.08 per cent in the previous month.

The non-food inflation, however, dropped to 5.49 per cent last month than that of 5.90 per cent in October.

When asked about the higher trend of the non-food inflation over the last few months, the planning minister said the prices of different items in the international market have increased, resulting in the rise in inflation.

However, the prices of food items in the local market are in the lower trajectory, which has kept the inflation at a lower level, he added.

When asked about the possibility of higher inflation trend ahead of the national election, Mr Mustafa Kamal said the consumer price index (CPI) is likely to be low, as candidates may spend less money in the poll this year.

"The election will only enhance the consumption of products like tea and sugar etc. These are not the essential items of our people. So, the election money will ultimately not have that much impact on CPI," he noted.

According to the BBS data, the rate of inflation in rural areas was recorded at 4.91 per cent in November compared to 4.87 per cent in October.

Out of the rate, the food inflation rose to 4.84 per cent in November from that of 4.52 per cent in October.

However, the inflation rate of the non-food items in the rural areas has decreased to 5.06 per cent last month from that of 5.53 per cent.

In the urban areas, the rate of food inflation was recorded at 6.32 per cent in November from that of 6.41 per cent in the previous month.

The noon-food inflation in the urban areas also dropped to 6.09 per cent last month compared to 6.41 per cent in October.

Meanwhile, BBS also unveiled the wage rate index (WRI) on Tuesday. It showed that WRI rose to 6.26 per cent in November from that of 6.19 per cent in October.

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