August inflation slightly down on food price falls

Overall inflation climbed down slightly to 6.91 per cent in August from 7.04 per cent in the previous month following a price fall of some essential food items, latest official counts showed.
Bangladesh Bureau of Statistics (BBS) data, released Thursday in Dhaka, showed that food inflation on point-to-point basis was lower at 7.67 percent last month. In the previous month, July, it was recorded at 7.94 per cent.
The non-food inflation, however, increased a little to 5.76 per cent in August compared to 5.71 per cent recorded in the previous month (July), according to the BBS data.
Planning Minister AHM Mustafa Kamal at a press meet at the Planning Commission said Thursday since the prices of different foodstuffs, edible oils and other products on the international market were showing lower trends, the inflation had fallen last month.
He said the point-to-point inflation in the previous month (July) was recorded a bit higher due to higher prices of the daily necessities on the occasion of Ramadan fasting and festivals.
The general Consumer Price Index (CPI) on the point-to-point basis in August increased to 202.53 from of 199.94 in the previous month (July), BBS data showed.
According to the BBS, the inflation in the rural areas had also fallen in August as it was recorded 6.83 per cent. In July-the first month of the current fiscal year--the inflation in the rural areas was recorded at 6.93 per cent.
In the urban areas, the inflationary trend last month was lower--recorded 7.08 per cent. In the previous month it was recorded at 7.24 per cent.
The planning minister, Mr Kamal, said they are hopeful of keeping the inflationary pressure within the 7.0 per cent limit in the current financial year (FY) 2014-15.
"If the overall inflation in Bangladesh is maintained within the 7.0 per cent limit, there is nothing to worry about the economy," he said.
In the current FY2015, the government has targeted to check the inflation within a limit of 7.0 percent.
Bangladesh was hard hit by the inflationary pressure in 2010-11 period when the point-to-point inflation crossed the double-digit mark from a cool 7.54 per cent in November 2010, BBS officials said.
Mr Mustafa Kamal at the press meet said Bangladesh is growing at a tremendous pace as it has maintained a 6.0 per cent economic growth over the last one decade even after impact of the global recession and internal political shocks.
He expressed his doubt about achieving 8.0 per cent GDP growth in the FY2015, as targeted in the 6th five-year development plan of the country.
"I am hopeful that Bangladesh's gross domestic product (GDP) will grow at a rate of over 7.0 per cent in the current fiscal and our economy will graduate to the middle-income country by 2021," he said.
Planning Secretary Bhuiyan Shafiqul Islam, Members of the Planning Commission and BBS high officials were present at the press meet.