Bangladesh's inflation recorded at 5.56pc in 2020-21 fiscal

| Updated: August 05, 2021 09:16:42

Bangladesh's inflation recorded at 5.56pc in 2020-21 fiscal

Bangladesh's average inflation rate in fiscal year (FY) 2020-21 was recorded at 5.56 per cent, up 0.16 percentage points from the government's target of 5.4 per cent, official data disclosed.

However, the 12-month average inflation rate was 0.09 percentage points lower than 5.65 per cent recorded in FY2020, according to the Bangladesh Bureau of Statistics (BBS).

For FY 2021-2022, the government has set a target to keep inflation within 5.3 per cent.

Meanwhile, the point-to-point inflation rate in June was recorded at 5.64 per cent, the highest in eight months as prices of some commodities went higher.

Monthly inflation was previously the highest at 6.44 per cent last October, the state stats agency revealed.

Overall point-to-point inflation in June rose by 38 basis points to 5.64 per cent from 5.26 per cent in May, it showed.

In June 2020, the rate was recorded at 6.02 per cent.

A senior BBS official said consumer price index of items like food, beverage, tobacco, clothing, footwear, rent, fuel, lighting, furniture, household equipment, medical expenses, education and cultural services maintained a higher trend in June 2021.

Covid-19's impact on the supply chain was one of the key factors for higher inflationary pressure during the period in question, he told the FE.

In June, the BBS recorded a big jump in food inflation.

Food inflation surged by 0.58 percentage points to 5.45 per cent last month compared to May's 4.87 per cent.

Non-food inflation also went up by 0.08 percentage points to 5.94 per cent during the period under review than that of 5.86 per cent in May.

Another BBS official said prices of rice, flour, edible oil and some vegetables were showing an upturn which has been reflected in last month's inflation.

Besides, rising expenditure in medical services during the ongoing coronavirus pandemic also fuelled the inflationary pressure, he added.

Meanwhile, point-to-point inflation in rural Bangladesh also rose to 5.84 per cent in June from May's 5.28 per cent, the BBS data showed.

Food inflation at village level was logged at 6.04 per cent, up from 5.25 per cent in May.

Non-food inflation surged to 5.46 per cent in June from that of 5.33 per cent in May.

According to the BBS data, inflation in urban areas also increased to 5.29 per cent in June from that of 5.24 per cent in May.

Food inflation rate in urban Bangladesh was recorded at 4.14 per cent in June, up from 4.03 per cent in May.

Non-food inflation rate also increased during the period to 6.59 per cent from May's 6.56 per cent.

The bureau also unveiled wage rate index which fell by 0.44 percentage points in June.

The index dropped to 5.97 per cent in June from that of 6.41 per cent in May.

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