Inflation up as turmoil upsets supply chain, affects economy

Overall inflation rose in the last two consecutive months as political unrest crippled supply chain across the country and badly hit economic activity, according to latest official disclosure.   

Bangladesh Bureau of Statistics (BBS) data showed the point-to-point inflation in March rose to 6.27 per cent from 6.14 per cent in February, as prices of food items spiked on rising transport cost.

The BBS findings were released Tuesday -- when another bout of countrywide strike was in progress, besides a prolonged blockade called by the BNP-led opposition.

Earlier, the point-to-point inflation had been maintaining a lower trend until January when it was recorded at 6.04 per cent.

Planning Minister AH Mustafa Kamal said the political turbulence along with nonstop transport blockade and a series of strikes in the months affected haulage of goods, resulting in a slight increase in the inflation in March.

"The main driver of picking up inflation is higher transportation costs of goods due to political unrest," he said in his briefing on inflation at the Planning Commission in the city Tuesday.

The country has been suffering from recurrent political unrest since January 5 this year, amid growing calls for a fresh election under a neutral government.

"Prices of food last month increased slightly as the supply chain is disrupted due to the political unrest," said a BBS official.

The month-on-month food inflation rose to 6.37 per cent in March from 6.11 per cent in February, the official data showed about a key barometer of the country's economic health.

In a contrast, non-food inflation dropped to 6.12 per cent from 6.20 per cent in the previous month.

The BBS reckonings showed rural and urban inflations both on the up-the latter climbing to 6.77 per cent in March from 6.62 per cent in February.

And in the rural areas the point-to-point inflation turned up to 6.01 per cent in March from 5.89 per cent in the previous month, February.

Urban-area food inflation surged 7.36 per cent from 7.02 per cent, while in rural areas, the price indices rose to 5.95 per cent from 5.72 per cent during the period.

In case of non-food inflation, the scale was down both in urban and rural areas.

The government aims to keep the inflation within a 6.0 to 6.5 per cent rate in the current fiscal year 2014-15.

Meanwhile, BBS has shown the growth of national wage-index at a 9.27 per cent in February in a rise from January's 9.24 per cent.

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