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Inflation eases to 5.37% in August

  • Published at 05:55 pm September 6th, 2016
  • Last updated at 05:56 pm September 6th, 2016
Inflation eases to 5.37% in August
The general inflation rate in the country has eased to 5.37% in August, the lowest in more than 10 years, due mainly to the lowering trend for the last couple of months and slight downtrend in food inflation. Planning Minister AHM Mustafa Kamal said this on Tuesday while releasing the monthly consumer price index (CPI) after the Ecnec meeting. The general point-to-point inflation rate that is the percentage change in the CPI during the last 12 months was 5.40% in July, 5.45% in May, 5.61% in April, 5.65% in March and 5.62% in February. According to data provided by the Bangladesh Bureau of Statistics (BBS), the food inflation, which tends to be more important in developing countries like Bangladesh where a large amount of household incomes is spent on food, slightly declined to 4.30-percentage point in August from 4.35-percentage point in July. According to the BBS, the average general inflation rate in the last fiscal year was 5.92%, which was 6.41% in fiscal year 2014-15, 7.35% in fiscal year 2013-14, and 6.78% in fiscal year 2012-13. The BBS data showed the food inflation rate, however, slightly increased to 7.00% in August 2016, up from 6.98% in July, 2016. Besides, the general inflation rate at the urban level in August increased to 7.15% while it was 4.41% at the rural level. At the rural level, the food inflation declined to 3.40% in August, down from 3.59% in the previous month, while the non-food inflation increased to 6.28 percent in August as against 6.26 percent in July this year. In urban areas, the food inflation also increased to 6.39 percent in August, up from 6.11 percent in July. The non-food inflation rate also witnessed increasing trend with 7.99% in August which was 7.98% in July this year. The national wage index, however, witnessed a declining trend with 6.06% in August down from 6.13% in July. The average year-to-year rate of inflation from September 2015 to August 2016 also declined to 5.77%, which was 6.13% from September 2014 to August 2015.