Published in The Independent on Wednesday, 8 January 2014.
Inflation soars to 7.35pc
Food inflation in December rises to 9pc
Staff Reporter
The country’s inflation as measured by the consumer price index (CPI) was in a rising trend in the month of December, mainly because of the Opposition-led consecutive political blockades and the hike in transport costs, the Bangladesh Bureau of Statistics (BBS) disclosed.
The general point-to-point inflation rate soared further in December, with both food and non-food items showing a rising trend, as it notched up 7.35 per cent from 7.15 per cent in November, said BBS director general Golam Mostafa Kamal on Tuesday while releasing the monthly Consumer Price Index (CPI) at the BBS auditorium.
According to BBS data, food inflation in December rose to 9.00 per cent, which was higher compared to 8.55 per cent in November.
The non-food inflation rate also increased to 5.88 per cent in December from 5.08 per cent in November.
In rural areas, general inflation rose to 7.22 per cent in December, while it was 6.92 per cent in November. Food and non-food inflation rates were 8.63 and 4.69 per cent respectively in December, while in November these were 8.06 and 4.88 per cent respectively.
The point-to-point inflation rate in December 2012 was 7.14 per cent.
In urban areas, general inflation rate remained unchanged and it was 7.58 per cent in December. The rates of food and non-food inflation came down to 9.89 and 5.13 per cent in December in urban areas while the rates were 8.06 and 4.88 per cent respectively in November.
The BBS director general said inflation increased 0.78 per cent in December compared to November because of increases in prices of rice, lentil, flour, fish and meat, fruits, edible oil, vegetable, milk and other essential commodities.
The national wage index rate also saw a 9.09 per cent growth this December at Tk. 8,020.88, which was at Tk. 7,938.20 in November.
The BBS director general said the supply chain in urban areas was affected more instead of the rural areas as a result of the ongoing political turmoil, particularly the countrywide blockades.
He further said that though different organisations home and abroad are assuming that the rising trend of the inflation rate will continue, the rate will not increase to a high level.
Mostafa Kamal also said inflation had increased due to hike in prices of cloth, house rent, furniture and domestic appliances, medical services, transport, educational equipment and different essential commodities during December compared to November.
The annual average inflation rate during January to December 2013 stood at 7.53 per cent compared to 6.22 per cent during the January to December 2012 period.
The annual average inflation rate was 7.51 per cent in the period from December 2012 to November 2013, while it was 6.25 per cent in the period from December 2011 to November 2012, he added.
Executive director of Centre for Policy Dialogue (CPD) Prof. Dr Mustafizur Rahman told The Independent that the inflation rate is likely to rise in the upcoming days if political volatility prevails in the country.
However, he said production is stable while the supply chain is disrupted due to political instability.
Besides, some dishonest businessmen are taking advantage of the political situation, that is why the price of products have increased in the market, he added.