Inflation up in July on gas price hike, flood

Staff Correspondent | Published: 00:00, Aug 21,2019

 
 

A file photo shows a farmer showing damaged paddy saplings on a field inundated by flood water at Char Chunduni of Bhuapur union in Tangail in July this year. The point-to-point inflation increased to 5.62 per cent in July from that of 5.52 per cent in June due to gas price hike, flood and commodity price increase before Eid-ul-Azha.— New Age photo

The point-to-point inflation increased to 5.62 per cent in July from that of 5.52 per cent in June due to gas price hike, flood and commodity price increase before Eid-ul-Azha.

Both food and non-food inflation rose in July, the first month of the current fiscal year 2019-2020, according to the data released by the Bangladesh Bureau of Statistics.

Inflation dropped slightly in June after rising for five months in a row.

Planning minister MA Mannan on Tuesday revealed the data at a press conference after the weekly ECNEC meeting held at the NEC auditorium at Agargaon in Dhaka.

He said that point-to-point inflation slightly increased in July due to flood and excessive rainfall in the month.

Some food items, mainly vegetables, were damaged and supply of goods was also hampered due to rain and flood, he said.

People also spent additional amount of money ahead of Eid-ul-Azha, which was celebrated on August 12, he said.

He said that the gas price hike with effect from July 1 also contributed to the increase of inflation in the month.

Hopefully, inflation will also come under control in next month, he added.

According to the BBS data, non-food inflation stood at 5.94 per cent in July increasing from 5.71 per cent in the previous month while food inflation also increased to 5.42 per cent in July from that of 5.40 per cent in June.

The prices of food items like fish, meat, egg, vegetables, edible oil, spices and soft drinks increased in July.

Expenditures for non-food items like clothes, house rent, gas, medical service and education materials also increased in the month, the data showed.

Point-to-point inflation at the urban areas increased to 5.88 per cent in July, which was 5.78 per cent in June.

In rural areas, point-to-point inflation rate also increased slightly to 5.49 per cent in the month from 5.38 per cent in June.

The data showed that non-food inflation in urban areas increased to 6.84 per cent in July from that of 6.64 per cent in previous month while food inflation stood at 5.03 per cent in the month from that of 5.01 per cent in June.

Food and non-food inflation in rural areas also increased to 5.60 per cent and 5.27 per cent respectively in July from 5.58 per cent and 5.01 per cent respectively in June.

At the briefing, planning minister also said that the government agencies, including ministries and divisions, could spend Tk 3,951 crore or 1.84 per cent of the annual development programme in the first month of the current FY2020.

In July of last FY19, the ADP implementing agencies spent Tk 1,027 crore or 0.57 per cent of total allocation for the year.

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