Bangladesh News

Inflation rate of food items in urban areas reached 15.77 percent and 13.91 percent in rural areas on point-to-point basis in December last year as prices of essentials, especially rice and flour, skyrocketed.

According to Bangladesh Bureau of Statistics (BBS) data, overall inflation rate in the country on point-to-point basis in December rose to 11.59 percent, which is 0.18 percent higher than that in November.

Inflation rate of food items in the country reached 14.46 percent in December. It was 0.63 higher than the rate in November that stood at 13.83 percent, the BBS figures show.

Inflation rate on non-food items however increased only by 0.01 percentage point in December when the figure was 7.27 percent.

Although the government and Bangladesh Bank projected the average inflation rate at nine percent in the current fiscal year, it reached 9.11 percent in December, just in the middle of the year.

Inflation is rising every month, except September last year.

While inflation rate in January 2007 was 5.94 percent, it leaped by 1 to 2 percentage point every month reaching up to 11.59 percent in December, the highest in the last two decades.

Prices of essential commodities like rice, wheat, pulse and edible oil increased in the last few months contributing to the rise of food inflation rate.

The government took some measures including open market sale (OMS) of rice and sale of commodities at fair prices at BDR-run shops to keep prices of these commodities stable.

According to Trading Corporation of Bangladesh (TCB), prices of different types of rice decreased by around 3 to 11 percent in the last one month.

But prices of rice and other essentials are still very high.

TCB data show price of coarse rice is Tk 28 to Tk 30 per kg now against Tk18 to Tk 19 just a year back, meaning 57 percent increase during this period.

Meanwhile, price of flour is still increasing. It sold at Tk 40-41 per kg yesterday while its price was Tk 24-27 a kg one year back, meaning 60- 65 percent increase in a year.

According to BBS data, overall inflation rate in rural areas increased by 0.44 percentage point and reached 11.63 percent in December last year. Inflation rate in urban areas increased by 0.18 percentage point and reached 11.74 percent.

In December, inflation rate on food items in urban areas increased by 0.27 percentage point and reached 15.77 percent while in rural areas it increased by 0.78 percentage point reaching 13.91 percent.

Inflation rate on non-food items in urban areas rose by 0.16 percentage point and reached 6.62 percent, and in rural areas it decreased by 0.03 percentage point and stood at 7.52 percent in December.