Oct inflation hits 2-yr low

Bangladesh's point-to-point inflation has fallen to a record low in October this year in last two years as it was registered at 6.60 per cent, the Bangladesh Bureau of Statistics (BBS) said Thursday.
BBS officials said two years ago in November 2012, inflation was in the lowest trajectory of 6.55 per cent which started to pick up and maintain higher trend in the last 24 months till September this year.
Except three months in the last two years (November 2012 to October 2014), inflation did not fall below the 7.0 per cent trajectory. During the period, it picked up even to 8.37 per cent in April 2013.
The point-to-point inflation in October dropped by 0.43 percentage points to 6.60 per cent from 7.03 per cent of the corresponding period last year while by 0.24 percentage points from the 6.84 per cent in the previous month September this year, the BBS data , released in Dhaka Thursday showed.
The average inflation in last one year (Nov 2013-Oct 2014) had also dropped to 7.18 per cent from 7.47 per cent of the corresponding period last year, the BBS said.
Planning Minister AHM Mustafa Kamal at a press briefing in the city's Planning Commission said since the prices of different products in the international market and in the major sourcing country India had fallen, inflation in Bangladesh has also come down.
He said the recorded inflation in October has proved that it is under the government target resulting in keeping the economy in a comfortable zone.
Development analyst Dr Ahsan H. Mansur said the country may see a comfort level of inflationary trend in the current financial year 2014-15.
"As prices of different products including oil in the international market are in a falling trend, supply of foods in the local market comfortable, local currency appreciated and inflation in the major sourcing country India fallen,  Bangladesh's outlook is good. It may not face any higher trend till the end of this fiscal," he told the FE.
According to the BBS data, the inflation on point-to-point basis for food items in October this year was recorded lower to 7.16 per cent. In the previous month September, it was recorded at 6.84 per cent.
The non-food inflation, however, gone up slightly to 5.74 per cent in October. In the previous month September, it was at recorded 5.63 per cent, the BBS data showed.
Director General of the BBS Golam Mostafa Kamal said since prices of different non-food items in the local markets during the Eid-ul-Azha were showing higher trend, inflation had gone up a little bit last month.
The general Consumer Price Index (CPI) on the point-to-point basis in October increased to 206.81 from 205.39 in the previous month September, the BBS data showed.
According to the BBS, the point-to-point inflation in the rural areas had also fallen in October as it was recorded at 6.49 per cent. In September last, the inflation in rural areas stood at 6.75 per cent.
In the urban areas, the inflationary trend last month dropped to 6.79 per cent. In the previous month September, it was recorded at 7.02 per cent.
Planning Minister Mr Kamal said they are hopeful of keeping average inflation within the target of 6.5 per cent to 7.0 per cent limit in the current financial year (FY) 2014-15.
In the current FY2015, the government has targeted to check inflation within a limit of 6.5 per cent to 7.0 per cent.
Bangladesh was hard hit by inflationary pressure in 2010-11 period when the point-to-point inflation crossed double-digit mark from 7.54 per cent rate in November 2010, BBS officials said.
Later, the point-to-point inflation was recorded lowest in September 2012 over the last three years to 4.97 per cent after its peak in the FY2010-11.
Mr AHM Mustafa Kamal also unveiled the point-to-point wage index of last month October which had fallen compared to that of the same month last year.
Quoting the BBS data, he said the growth of Bangladesh's general wage rate in October had expanded at 10.70 per cent rate. In the previous month September, the wage growth was recorded at 10.77 per cent.

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