Rural people hit hard as price inflation hits 31-month high
Tuesday, 26 April 2011
FHM Humayan Kabir
Point-to point price inflation hit double digit to 10.46 per cent in March, the steepest spike since July 2008, as rising food prices hit consumers mostly in the country's rural areas, officials said Monday. The Bangladesh Bureau of Statistics (BBS) said the jump was driven by a 13.87 per cent rise in food prices as rice, wheat, edible oil and sugar prices set new marks both in the local and international markets. It was the highest point-to-point inflation rate in 31 months. Price inflation soared to 10.82 in July 2008 on the back of a record-breaking food price hike in the global market. It was also the first time since October 2008 that the point-to point inflation has crossed double digit in a sign that the government's efforts to rein in prices through sale of subsidised rice has largely failed to make headway. According to the BBS, ballooning food prices contributed most to the price upswing. Food inflation hit more than two years high to 13.87 in March, up from 12.77 per cent in the previous month. "Inflation hit double digit due to high food prices. The hike in food prices was three times higher than the non-food prices," a senior BBS official told the FE. Officials said the poor and villagers in the rural areas --- home to 70 per cent of Bangladesh's 150 million population --- were the hardest hit by soaring prices of food and other commodities. "In recent months food prices in villages have been shooting up steadily despite expansion of subsidized rice sale in the sub-districts. The jump is bigger than in the cities and district towns," he said. Inflation in rural areas stood at 11.33 per cent in March, which is 2.93 percentage points higher than 8.40 per cent in the urban areas, the BBS said. In February point to point price inflation was 10.47 per cent in rural areas and 8.09 per cent in urban centers. Food inflation was recorded 14.84 per cent in rural areas and non-food inflation 4.39 per cent, data released by the BBS showed. Prices of food items grew 11.66 per cent in urban areas and non-food items 4.13 per cent last month. Inflation started to creep in since December last year in the wake of an upward trend in global oil and food prices. "Price pressure has now emerged as a key challenge for the government. If it is not tackled now, the economy will be affected seriously," said an official. In June last year the government had set a target to keep the inflation bottled up at around 6.50 per cent in the current 2010-11 fiscal year. Bangladesh Bank said the annualised inflation rate has now entrenched at over eight per cent.
Point-to point price inflation hit double digit to 10.46 per cent in March, the steepest spike since July 2008, as rising food prices hit consumers mostly in the country's rural areas, officials said Monday. The Bangladesh Bureau of Statistics (BBS) said the jump was driven by a 13.87 per cent rise in food prices as rice, wheat, edible oil and sugar prices set new marks both in the local and international markets. It was the highest point-to-point inflation rate in 31 months. Price inflation soared to 10.82 in July 2008 on the back of a record-breaking food price hike in the global market. It was also the first time since October 2008 that the point-to point inflation has crossed double digit in a sign that the government's efforts to rein in prices through sale of subsidised rice has largely failed to make headway. According to the BBS, ballooning food prices contributed most to the price upswing. Food inflation hit more than two years high to 13.87 in March, up from 12.77 per cent in the previous month. "Inflation hit double digit due to high food prices. The hike in food prices was three times higher than the non-food prices," a senior BBS official told the FE. Officials said the poor and villagers in the rural areas --- home to 70 per cent of Bangladesh's 150 million population --- were the hardest hit by soaring prices of food and other commodities. "In recent months food prices in villages have been shooting up steadily despite expansion of subsidized rice sale in the sub-districts. The jump is bigger than in the cities and district towns," he said. Inflation in rural areas stood at 11.33 per cent in March, which is 2.93 percentage points higher than 8.40 per cent in the urban areas, the BBS said. In February point to point price inflation was 10.47 per cent in rural areas and 8.09 per cent in urban centers. Food inflation was recorded 14.84 per cent in rural areas and non-food inflation 4.39 per cent, data released by the BBS showed. Prices of food items grew 11.66 per cent in urban areas and non-food items 4.13 per cent last month. Inflation started to creep in since December last year in the wake of an upward trend in global oil and food prices. "Price pressure has now emerged as a key challenge for the government. If it is not tackled now, the economy will be affected seriously," said an official. In June last year the government had set a target to keep the inflation bottled up at around 6.50 per cent in the current 2010-11 fiscal year. Bangladesh Bank said the annualised inflation rate has now entrenched at over eight per cent.