The overall inflation slightly rose to 7.48% in March from 7.44% in February due to the rising food prices, showed official statistics released yesterday.
According to the analysts, the increase of wages in many sectors, particularly the apparel industry in early this year, led to the rise of goods and services cost.
However, the authorities insisted the inflation remained relatively low although the rate crossed the government’s fiscal target of 7% for 2013-14.
Bangladesh Bureau of Statistics (BBS) published the March data at a press conference in Dhaka.
"Inflation slightly increased in March due to rise in food prices,” said BBS director general Golam Mostafa Kamal.
"Look at the rising trend. It’s not significant,” he said. "We hope inflation will remain just around the fiscal target.”
Prices of rice, lentil, flour, vegetables, fruits, spices, milk and other essentials soared in March, BBS said, adding that non-food sector inflation was due to increased cost of garment production, rise of house rents and medical, transport, education material and other services costs.
"In my view food prices increased as business people tried to make up the losses they incurred during political unrest before and after
January 5 elections,” said Golam Mostafa Kamal.
BBS report said the food inflation rose to 8.96% from 8.84% in previous month while non-food inflation including house rent and transportation slightly fell to 5.26% from 5.37%.
In March, flour price soared by 2.3%, lentil 1%, potato 18.9%, onion 6.7% and ginger 38%, according to the data of Trading Corporation of Bangladesh.
"This was wage-pushed inflation. As wages increased in many sectors including the RMG, inflation was not surprising,” Ahsan H Mansur, executive director of Policy Research Institute, said.
"Since the goods and services became costlier, wage hike was a necessity for the employees to cope with the rise of living cost,” said Ahsan Mansur.
He stressed that Bangladesh Bank needs to be much more vigilant to make its monetary policy successful.
"Present trend might continue as long as consumers’ purchasing capacity is adjusted with the real prices of goods and services.”
BBS cited the national wage rate increased 9.41% in March from 9.23% in February.