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Inflation cools in FY’19 after steep increase

FE Report | Published: July 10, 2019 10:15:32 | Updated: July 10, 2019 16:25:05


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After a sharp rise, the average inflation rate fell to 5.48 per cent in the just-concluded fiscal year, the government said.

The inflation rate is 0.08 percentage points lower than the government's 5.6 per cent target in 2018-19 fiscal.

But the average inflation rate in FY'18 was higher at 5.78 per cent.

After the steep rise since January this year, the point-to-point inflation rate in June dropped to 5.52 per cent, according to the Bangladesh Bureau of Statistics (BBS) data released on Tuesday.

In May, the point-to-point inflation rate was recorded at 5.63 per cent.

The rate of inflation on point-to-point basis in June last year was, however, lower at 5.54 per cent.

After the meeting of the Executive Committee of the National Economic Council (ECNEC), planning minister MA Mannan said the inflation has fallen due to adequate stock of rice, onion, and other food items in the country.

BBS data showed food inflation dropped slightly to 5.40 per cent in June from 5.49 per cent a month earlier.

Besides, non-food inflation fell to 5.71 per cent from 5.84 per cent in May.

According to the BBS data, the rate of point-to-point inflation in rural and urban areas also fell in June.

In rural areas, the inflation rate last month was recorded at 5.38 per cent compared with 5.44 per cent in May.

Of the inflation, the food inflation in villages dropped slightly to 5.58 per cent in June from 5.67 per cent in May.

The non-food inflation in rural areas, however, was recorded at 5.01 per cent like the previous month's 5.01 per cent.

In urban areas, the inflation on point-to-point basis also showed the lower trend at 5.78 per cent from 5.96 per cent in May.

The food inflation in cities dropped to 5.01 per cent compared with 5.09 per cent in May.

The non-food inflation in urban areas also dropped to 6.64 per cent from 6.95 per cent in May.

During FY2019-20, the government aims to keep the inflation rate within the limit of 5.5 per cent.

kabirhumayan10@gmail.com

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