Bangladesh's general inflation rate ticked up again in October, rising 30 basis points to 9.93%, from the 9.63% recorded in September, threatening to reach alarming double digits before the end of this year.
October's data means inflation averaged 9.5% in 2023 and 9.79% so far this fiscal year -- well above the government's budgetary target of 6%.
Although the rise wasn't astronomical, it showed the continued futility of the government's efforts to rein in prices, with food inflation, relating to the prices of just food items, far outpacing the general rate to hit a 10-year high of 12.56% in October.
The Bangladesh Bureau of Statistics (BBS) released the updated Consumer Price Index (CPI) data for October on Monday.
The food inflation rate has risen above 12.37% in September.
It crossed the 12% mark in August as well.
For more than a decade, food inflation had remained in single digits.
In January 2012, for the last time food inflation was recorded at a comparable level of 12.73%.
The prices of daily commodities are increasing in the market. Although various initiatives have been taken to reduce inflation, it's not reflected in the market.
Many common people are now under pressure to afford food. Wage earners' incomes are not increasing in line with inflation.
In October, the price of potato, fish, rice, pulses, oil, salt, fish, meat, vegetables, spices, and tobacco products increased and the rate of food inflation increased, BBS said.
According to BBS data, food inflation stood at 8.50% in October last year.
In the current FY24, the government has set a target of keeping inflation within 6%.
But the first four months have not seen any progress towards that.
The average inflation in the first three months of the current fiscal was 9.74%, but instead of being clawed back in October, it actually rose again, towards the psychological double-digit barrier.
Salim Raihan, executive director of the private research institute South Asian Network on Economic Modeling (Sanem), told the media: "Food price inflation is becoming more vulnerable. Initiatives taken by the government in the last years or so to control inflation have not been showing any benefit. For example, after many days of the announcement of importing eggs, they only just arrived in the country. Apart from this, there is fear of political unrest and violence in the next few months."
The economist also predicted that in the coming days inflation may go up further for ongoing political unrest, "In such a situation, there is little possibility of inflation in the next two to three months. This will increase the suffering of poor people."
Economist and researcher Khandaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), said: "An environment has gradually developed over the past few years in terms of imports and the market share of some essential products is now under the control of a few companies. They (the syndicate) are offering products to the market on their own terms and conditions by creating their own chain from import to retail stage. Others are being forced to stop doing business if they don't comply.”