Inflation declines in May

A slump in global food prices kept the local market cool with a healing impact on inflation that dropped to 6.19 per cent in May last.
However, non-food inflation went up marginally in both rural and urban areas from the level of previous month.
The rate of inflation in May fell from a level of 6.32 per cent in April under the impact of lower food costs, the Bangladesh Bureau of Statistics (BBS) data, released Wednesday, showed.
In May of the last financial year (FY) 2013-14, the inflation was recorded much higher at 7.48 per cent.
Planning Minister AHM Mustafa Kamal unveiled the inflation data at a meet-the-press function at the Planning Commission in the city, explaining the factors that gave them a feeling of respite.
The inflation on account of non-food items picked up in May to 6.14 per cent from 6.08 per cent in April and from 5.16 per cent a year ago, in May of the previous FY2014.
The food inflation, however, dropped to 6.23 per cent in the last month from that of 6.48 per cent in the previous month (April) and from 7.48 per cent in May FY2014.
Also, the BBS has recorded 12-month (June 2014-May 2015) average inflation at 6.46 per cent, which was 7.44 per cent in the corresponding period of previous year.
The government is in a comfortable zone with the consumer price index (CPI) showing a falling trend as regards inflation. Earlier, the government had set a target to bring down the inflation to 6.0 per cent in the current FY2015.
Planning Minister Mr Kamal said: "Since the prices of oil on the international market and that of the food items like rice, vegetables on the local market had been maintaining a lower trend, the overall inflation dropped last month."
As per the BBS data, in rural area the inflation rate in May was lower at 5.84 per cent, which was 6.03 per cent in April this year.
In the urban areas, the point-to-point inflation also fell slightly, to 6.87 per cent, in May from 6.88 per cent in the previous month of April.
The food inflation in the urban areas stood at 7.54 per cent in May this year against 7.62 per cent in the previous month. In the rural areas, it also dropped to 5.6 per cent last month from the previous mark of 5.99 per cent.  In case of non-food inflation, however, swung up in urban and rural areas both.
According to the BBS data, the non-food inflation rate in the urban areas increased to 6.14 per cent last month from 6.09 per cent in the previous month (April).
In the rural areas, it was recorded at 6.14 per cent in May against the previous mark of 6.07 per cent, the BBS showed.
Meanwhile, the national wage index witnessed a rise to 9.44 per cent in May from the April rate of 9.36 per cent.
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