Sunday, 29 January, 2023

Inflation eases further in December

  • Staff Correspondent
  • 3 January, 2023 12:00 AM
  • Print news
Inflation eases further in December

Overall inflation in Bangladesh modestly declined to 8.85 percent in December, 2022 thanks to easing of food prices along with a marginal fall in non-food inflation. 

In the month of November, point-to-point general inflation was recorded at 8.71 percent. Bangladesh Bureau of Statistics (BBS) published the Consumer Price Index (CPI) data on Monday. 

However, the average inflation last month increased by 2.76 percentage points year-on-year reaching 8.71 percent from 6.05 percent in December 2021, the BBS data suggests.     

Meanwhile, the food inflation plunged to 7.91 percent on a point-to-point basis which was 8.14 percent in November while the non-food inflation declined marginally to 9.96 percent from 9.98 percent. 

BBS said that the food inflation dropped as the price of fish, meat, vegetables, spices and tobacco items fell in December compared to their price level in the previous month. 

The fall in the cost of house rent, furniture, household items, medical facility, transport and educational materials contributed to the slight fall in non-food inflation, it said. 

The BBS data showed that the general point-to-point inflation in rural areas slightly declined to 8.86 percent from 8.94 percent in November.

However, the general point to point inflation rate in the urban areas also declined to 8.43 percent from 8.70 percent registered in November.

The national wage index rate in December reached 7.03 percent, up from the 6.98 percentage point posted in November.

Bangladesh witnessed a record 9.5 percent inflation in August, the highest in 12 years because of adverse effects of fuel price hike amid the Russia-Ukraine war, said the BBS.

However, despite record inflation in August, it was possible to rein in the trend in September as the inflation fell to 9.1 percent. Then in October last year, the overall inflation dropped to 8.91 percent on a point-to-point basis.

Planning Minister MA Mannan blamed the Russia-Ukraine war and the unstable world situation in recent months for the high inflation.

He had also expected that inflation would go down this month as essential commodities' supply increased after the supply chain strengthened.

Since the start of the Russia-Ukraine war in late February 2022, the price of food, energy, fertiliser and other commodities sharply rose due to severe disruptions in the supply chain.

As a net importing country, Bangladesh’s imports grew unusually, which fuelled inflation and caused a continuous fall in the value of local currency against the greenback.