Inflation drops sharply in May

Staff Correspondent | Published: 22:42, Jun 02,2020

 
 

A file photo shows a man buying garlic from a vendor in Dhaka in May. Point-to-point inflation significantly dropped by 0.61 percentage points to 5.35 per cent in May from 5.96 per cent in April. — New Age photo

Point-to-point inflation significantly dropped by 0.61 percentage points to 5.35 per cent in May from 5.96 per cent in April as demand for both food and non-food items fell in the month due to the countrywide lockdown imposed to tame the coronavirus pandemic.

Food inflation declined to 5.09 per cent in May from 5.91 per cent a month ago while non-food inflation also decreased to 5.75 per cent in the month from that of 6.04 per cent in April, according to the Bangladesh Bureau of Statistics data.

Point-to-point inflation rose to 5.96 per cent in April from 5.48 per cent in March as consumers went for panic buying, particularly for food items, after the government announced a general holiday beginning on March 29 to contain the pandemic.

After that, demand for food items declined sharply which led to the fall in general inflation.

According to the BBS data, point-to-point inflation, food inflation and non-food inflation in both the urban and rural areas dropped in May compared to the previous month.

Point-to-point inflation, food and non-food inflation in the urban areas declined in May to 4.81 per cent, 3.94 per cent and 5.79 per cent respectively from 5.73 per cent, 5.33 per cent and 6.20 per cent respectively a month ago.

In the rural areas, general inflation, food and non-food inflations stood at 5.65 per cent, 5.61 per cent and 5.73 per cent respectively in May.

In April, general inflation, food inflation and non-food inflation was 6.08 per cent, 6.17 per cent and 5.92 per cent respectively.

The BBS data showed that the prices of rice, pulse, sugar, fish, meat, egg, onion, garlic, ginger and vegetables fell in May.

According to the data, the national wage index rate also dropped to 5.89 per cent in May from 6.10 per cent in April as a result of falling wages in all three sectors — agriculture, industry and services.

The data showed that the wage index rate for agriculture dropped to 6.16 per cent in the month from 6.33 per cent in April.

The wage index rates for industry and services declined to 5.29 per cent and 5.75 per cent respectively in May from 5.59 per cent and 5.99 per cent respectively in April.

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