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Search date: 30-12-2018 Return to current date: Click here

Non-food inflation at play in 2018

FHM Humayan Kabir | December 30, 2018 00:00:00


The month-on-month inflation rates on a point-to-point basis for food and non-food items were behaving erratically throughout the year 2018, analysts said.

The inflation rate for non-food items rose significantly for months.

It, however, fell for food items during the same period, according to the latest data of the Bangladesh Bureau of Statistics (BBS).

The rate of non-food inflation on a point-to-point basis in January of the current calendar year was the lowest at 3.23 per cent.

However, it rose by 2.16 percentage points to 5.49 per cent in November, the BBS data showed.

The inflation rate for food items was the highest at 7.62 per cent in January.

It later fell to 5.29 per cent in November, according to the data.

Meanwhile, the country's overall inflation (food and non-food included) on a point-to-point basis was recorded at 5.37 per cent last month.

It was recorded at 5.88 per cent in January.

Economists and market analysts said higher trend of inflation for non-food items was an interesting thing for the country in 2018, although the prices globally were almost stable.

Even there were no political and natural shocks in the domestic market in 2018, they observed.

As Bangladesh needs to import consumables from abroad, the analysts said inflation for non-food items should not be affected because of stable overseas markets.

Economist Dr AB Mirza Azizul Islam said although the prices of non-food consumer items globally were stable throughout the year, a steep rise in non-food inflation here was interesting.

However, the overall inflation below 6.0 per cent rate was tolerable for a developing country like Bangladesh, he told the FE.

Consumers Association of Bangladesh President Ghulam Rahman said the present inflation level was almost stable and tolerable.

A rise in non-food inflation on a point-to-point basis was bad for the country, but overall inflation on a below 6.0 per cent trajectory was good, he told the FE.

"We're preparing an analysis of the price index and price trends of the current calendar year to be published early next month," Mr Rahman added.

"We'll give an analysis of the prices of the consumer items and the inflation trend," he mentioned.

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