Point-to-point inflation 10.03pc in October
Thursday, 22 November 2007
Shakhawat Hossain
The point-to-point inflation hit the double-digit mark again and stood at 10.03 per cent in October last, sources said.
According to the provisional estimate, the hike in the prices of essential food items such as rice, wheat, powdered milk, onion and edible oils led to the rise in inflation.
The point-to-point inflation stood at 9.6 pre cent in September that was welcome news for the present caretaker administration which has been struggling hard to contain the inflationary pressure on the economy.
The rate of inflation reached 10.10 per cent in July for the first time in last two decades and went further up at 10.11 per cent in August last.
Sources did not disclose details of the provisional estimate on food and non-food inflation and their impact on the rural and urban areas.
They, however, said the provisional data prepared by the Bangladesh Bureau of Statistics (BBS) and sent to the planning ministry showed that food inflation marked significant rise in both rural and urban areas.
Sources said the BBS officials found that the prices of medicines and even blood needed for transfusion had gone up in the local market since July. The trend, according to them, was continuing until October.
The BBS officials expressed the hope that the inflation may come down in the upcoming months following some measures taken by the Bangladesh Bank (BB) to make the greenback a little bit cheaper with a view to reducing the import cost of essential items.
There have been some debates over the inflationary development and the country's monetary policy.
There is no denying that high prices of essentials in the international market and disruption in local supply chain have been largely responsible for food-led inflation.
The central bank was pursuing a tight monetary policy in the first quarter of the fiscal year to stave off inflationary pressure despite criticism from different quarters.
However, the BB has changed its policy stance and it has been pursuing an accommodative monetary policy since the second quarter of the current fiscal with the aim of containing the inflationary pressure.
The point-to-point inflation hit the double-digit mark again and stood at 10.03 per cent in October last, sources said.
According to the provisional estimate, the hike in the prices of essential food items such as rice, wheat, powdered milk, onion and edible oils led to the rise in inflation.
The point-to-point inflation stood at 9.6 pre cent in September that was welcome news for the present caretaker administration which has been struggling hard to contain the inflationary pressure on the economy.
The rate of inflation reached 10.10 per cent in July for the first time in last two decades and went further up at 10.11 per cent in August last.
Sources did not disclose details of the provisional estimate on food and non-food inflation and their impact on the rural and urban areas.
They, however, said the provisional data prepared by the Bangladesh Bureau of Statistics (BBS) and sent to the planning ministry showed that food inflation marked significant rise in both rural and urban areas.
Sources said the BBS officials found that the prices of medicines and even blood needed for transfusion had gone up in the local market since July. The trend, according to them, was continuing until October.
The BBS officials expressed the hope that the inflation may come down in the upcoming months following some measures taken by the Bangladesh Bank (BB) to make the greenback a little bit cheaper with a view to reducing the import cost of essential items.
There have been some debates over the inflationary development and the country's monetary policy.
There is no denying that high prices of essentials in the international market and disruption in local supply chain have been largely responsible for food-led inflation.
The central bank was pursuing a tight monetary policy in the first quarter of the fiscal year to stave off inflationary pressure despite criticism from different quarters.
However, the BB has changed its policy stance and it has been pursuing an accommodative monetary policy since the second quarter of the current fiscal with the aim of containing the inflationary pressure.