Food inflation up in Oct on onion prices

Staff Correspondent | Published: 00:00, Nov 06,2019 | Updated: 23:28, Nov 05,2019

 
 

A file photo shows a man holding onions at a market in Dhaka recently. Food inflation increased by 0.19 percentage points to 5.49 per cent in October amid surge in the prices of onion during the month, according to the data of the Bangladesh Bureau of Statistics. — New Age photo

Food inflation increased by 0.19 percentage points to 5.49 per cent in October amid surge in the prices of onion during the month, according to the data of the Bangladesh Bureau of Statistics.

In September, food inflation stood at 5.30 per cent.

General inflation, however, slightly dropped to 5.47 per cent in October from that of 5.54 per cent in September due to a decline in non-food inflation, the data showed.

Non-food inflation also declined by 0.47 percentage points and stood at 5.45 per cent in October from that of 5.92 per cent in September.

Prices of onions skyrocketed up to Tk 150 a kilogram in October, increasing from Tk 70 a kg to Tk 80 a kg in late September.

Onion prices jumped to Tk 120 a kg overnight on October 1 following India’s onion export ban imposed on September 29.

Planning minister MA Mannan revealed the inflation data at a press briefing held after the weekly meeting of Executive Committee of the National Economic Council at the ministry in Dhaka on Tuesday.

He, however, said that overall inflation had declined as the prices of most essential products, except for onion, were under control while the prices of a few items, including rice, had fallen in the month.

Mannan said that the prices of rice, the main staple food of people having the highest weight in inflation calculation, along with that of vegetables, fruits and fishes dropped in the month.

The BBS data showed that point-to-point inflation and non-food inflation in both urban and rural areas fell in October while food inflation increased in both areas during the month.

General inflation in urban and rural areas stood at 5.67 per cent and 5.36 per cent respectively in October, declining from 5.80 per cent and 5.41 per cent from a month ago.

In October, non-food inflation in both urban and rural areas declined to 6.09 per cent and 4.94 per cent respectively from that of 6.61 per cent and 5.42 per cent a month ago.

Food inflation in urban and rural areas increased to 5.31 per cent and 5.56 per cent respectively in October. In September, food inflation in urban was 5.10 per cent and that in rural areas was 5.40 per cent.

According to the BBS data, the national wage index rate also declined  by 0.13 percentage points to 6.38 per cent in October against 6.51 per cent in the previous month.

Wage index rates for the three main sectors — agriculture, industry and services — also witnessed a fall to 6.50 per cent, 6.08 per cent and 6.43 per cent respectively in the month.

In September, wage index rates were 6.53 per cent, 6.37 per cent and 6.71 per cent for agriculture, industry and services sectors respectively, the data showed.

Mannan said that reduction in wage index rates would not create any problems as inflation had also declined simultaneously.

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