Inflation down by .3% in August

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Dhaka, September 6: Inflation in the country downed to 5.37 per cent in August, which was 5.40 per cent in the preceding month of July.

“Inflation fell in August owing to slight downtrend in food inflation,” said Planning Minister AHM Mustafa Kamal while releasing the monthly consumer price index (CPI) after the ECNEC meeting at NEC Conference Room in the capital on Tuesday.

The general point-to-point inflation rate that is the percentage change in the CPI during the last 12 months was 5.40% in July, 5.45% in May, 5.61% in April, 5.65% in March and 5.62% in February.

“Inflation remains within our expectation. In August, inflation was 5.37 per cent which is the lowest in recent years,” Kamal said.

Bangladesh Bureau of Statistics (BBS) acting Director-General Baitul Amin Bhuiyan and Planning Secretary Tariq-ul-Islam were present.

According to data provided by the BBS, the food inflation, which tends to be more important in developing countries like Bangladesh where a large amount of household incomes is spent on food, slightly declined to 4.30 percent in August from 4.35 percent in July.

The average general inflation rate in the last fiscal year was 5.92%, which was 6.41% in fiscal year 2014-15, 7.35% in fiscal year 2013-14, and 6.78% in fiscal year 2012-13.

Besides, the general inflation rate in urban areas in August increased to 7.15% while it was 4.41% at the rural level.

In the rural areas, the food inflation declined to 3.40% in August, down from 3.59% in the previous month, while the non-food inflation increased to 6.28 percent in August as against 6.26 percent in July this year.

In urban areas, the food inflation also increased to 6.39 percent in August, up from 6.11 percent in July. The non-food inflation rate also witnessed increasing trend with 7.99% in August which was 7.98% in July this year.