Inflation dips a bit in August

Staff Correspondent | Published at 10:41pm on September 06, 2018

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A file photo shows a trader weighing rice at a shop in Dhaka. Inflation went down to 5.48 per cent in August from that of 5.51 per cent in July due mainly to a decline in food inflation in last one month. — Focusbangla photo

Inflation went down to 5.48 per cent in August from that of 5.51 per cent in July due mainly to a decline in food inflation in last one month.
Food inflation significantly dropped by 0.21 percentage points to 5.97 per cent in the month from 6.18 per cent in July despite a large amount of money was spent by consumers in August to celebrate the Eid-ul-Azha — the biggest festival of Muslim community.
Non-food inflation, however, increased by 0.24 percentage points to 4.73 per cent in August from that of 4.49 per cent in the previous month, according to the Bangladesh Bureau of Statistics data.
Planning minister AHM Mustafa Kamal released the monthly inflation data at a press briefing at NEC auditorium in Dhaka on Thursday.
Kamal said general inflation declined in the month despite an additional expenditure made by the consumers to celebrate the festival as there was no mismatch between supply and demand in the country.
There was sufficient supply of imported food items along with uninterrupted supply of locally produced products keeping the point to point inflation under control, he said.
Though there are no official estimations on how much money was spent during the Eid, economists and traders say that consumers spent more than Tk 50,000 crore on buying sacrificial animals, spices, clothes and cost of transportation on the occasion.
Replying to a question on impact of Eid-centric expenditures, planning minister said the Eid expenditures could not influence the rate of inflation as the products sold on occasion of Eid were not significant in inflation calculation.
Only unusual rise in the prices of food products can affect the rate of inflation, he said.
According to the BBS data, overall inflation and food inflation in urban areas decreased while non-food inflation increased in August.
On the other hand, point to point inflation and non-food inflation increased in rural areas while food inflation remained unchanged in the month.
In August, point to point inflation, food and non-food inflation stood at 6.28 per cent, 7.39 per cent and 5.04 per cent respectively in urban areas which were 6.37 per cent, 8.08 per cent and 4.50 per cent respectively in July.
In rural areas, point-to-point inflation and non-food inflation increased to 5.05 per cent and 4.51 per cent respectively in the month, which were 5.04 per cent and 4.49 per cent respectively in July.
Food inflation in rural areas remained unchanged at 5.34 per cent in August.
Prices of food items like rice, meat, fish, egg, spices and other food items, and expenditure for non-food items like clothes, house rent, electricity, medical service, transport and education materials increased in August, BBS data showed.