Inflation eases slightly in Dec

FE Report | Published: January 30, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

The country's inflation as measured by consumers' price index (CPI) eased slightly in the month of December last on both the point-to-point and 12-month average basis mainly because of decrease in prices of food items.
The inflation rate came down to 6.11 per cent in December 2014 from 6.21 per cent of the previous month on the point-to-point basis, according to the Bangladesh Bureau of Statistics (BBS) data.
On the other hand, the annual average inflation fell to 6.99 per cent in December last from 7.10 per cent of the previous month.
"The CPI inflation decline is, however, mainly from the food component of the consumption basket. Core (non-food, non-fuel) CPI inflation has been on somewhat upward edging trend in November and December 2014," the BB governor explained.
He also said progress in bringing annual average CPI inflation down from 7.35 per cent at the beginning of FY 15 to 6.5 per cent by June 2015 is broadly satisfactory, with 6.99 per cent level by the close of the H1 of FY 15.
The central bank governor hoped that the MPS for the H2 of FY 15 would play the same effective role as the previous one in instilling and strengthening public confidence on the BB's actions aimed at containing and stabilising CPI inflation.
He also believed that its attendant inclusive, environmental sustainability supportive credit and financial policies would make meaningful contribution in supporting the government's pursuit of inclusive, environmentally sustainable growth and poverty eradication on the country's path towards prosperity.
The central bank projected that the country's overall trade deficit might rise to US$9.91 billion by the end of the FY 15 from $6.81 billion in the previous fiscal.
The current account deficit might reach $1.35 billion in the FY 15 from $1.35 billion surplus a year ago.
The country's current account balance entered into negative territory in the month of September 2014 due to higher landed imports, a BB official said.
The overall balance of payments (BoP) may come down to $642 million in the FY 15 from $5.48 billion in the previous fiscal, according to the BB's latest projection.
BB Change Management Advisor Allah Malik Kazemi and Chief Economist Biru Pakska Paul also spoke on the occasion.
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