Inflation dropped to 6.19% in May following rise in three consecutive months with contributions from low oil prices and restored supply chain of essentials.
The inflation fell 0.13% percentage points from 6.32% in April, showed the latest data released by Bangladesh Bureau of Statistics yesterday.
The May data indicated the sharpest fall since November last year.
It is also marginally below from the government’s target to trim annual inflation to 6.5% in the outgoing fiscal year.
Analysts say decline in inflation is mostly the result of falling petroleum product prices and restoration of supply chain.
Month-to-month food inflation dropped to 6.23% in May from 6.48% in April.
In contrast, non-food inflation moved up 6.14% from 6.08% in the previous month.
Prices of goods, mostly produced in the rural areas, increased because of the supply chain disruption at that time.
“Plunge in prices of petroleum products in the international market and domestic market as well helped to pull back inflation,” Planning Minister AHM Mustafa Kamal told journalists.
He was releasing the monthly consumer price index at the National Economic Council Conference room yesterday.
Replying to a question, he said there is no crisis of food and non-food items ahead of Ramadan and the month of budget announcement (June) where prices of the essentials are mostly stable across the country.
Besides, he said the rate of exchange in the country is almost stable for the last five to six years, contributing to the fall of inflation, he added. In urban areas, the May inflation rate was 6.87%, which was 6.88% in April and in rural areas, it was down 5.84% from 6.03%.
In urban areas, food inflation slipped 7.54% from 7.62% and in rural areas, it declined to 5.66% from 5.99% during the period.
In the case of non-food inflation, it rose in both urban and rural areas. Planning minister hoped the rate would remain well below the government’s annual inflation target.
On rising non-food inflation, officials said the market rate of laundry, cleaning, clothes and recreation facilities fluctuates. It has triggered slight rise in the prices of non-food items.
Officials said decline in global oil prices and restored supply chain of essentials also helped lower the rate.
According to them, the trend remains in line with the government’s target of keeping inflation below 6.5%.
