Inflation hits 8-year high

The general point-to-point inflation rate in the country increased by 1.13 percentage point to 7.42 per cent in May 2022.

It was the highest in last eight years. The inflation rate in April was 6.29 per cent while it was 6.22 per cent in March.

In May 2014, the country’s inflation rate was 7.48 percent.

Bangladesh Bureau of Statistics (BBS) on Sunday revealed the ‘Consumer Price Index (CPI), Inflation Rate and Wage Rate Index (WRI) for the month of May.

In May, the country’s overall inflation was 7.42 percent. Of this, food inflation was 8.30 per cent while non-food inflation 6.08 per cent.

Food inflation was 6.23 per cent in April while non-food inflation 6.39 per cent, the BBS data said.

Meanwhile, the general point to point inflation rate was 6.17 per cent in February 2022.

Bangladesh Bureau of Statistics (BBS) data showed that the food inflation increased by 2.07 per cent in May 2022 from 6.23 per cent in April 2022.

The non-food inflation rate also increased 0.31 percentage point in May from 6.39 per cent in April 2022.

Meanwhile, the inflation in rural areas rose at a higher rate than that of the urban areas last month.

In May, the rural inflation increased to 7.94 per cent from 6.59 per cent in April.

The food inflation in the rural areas recorded at 8.84 per cent last month, up from 6.64 per cent in April.

The non-food inflation decreased to 6.26 per cent in May in rural Bangladesh from that of 6.50 per cent in April.

The urban inflation increased to 6.49 per cent in May from that of 5.75 per cent in April.

The food inflation in urban areas recorded at 7.08 per cent last month, up from 5.31 per cent in April.

However, the non-food inflation in urban areas decreased to 5.85 per cent in May from 6.25 per cent in April.

President of Consumers Association of Bangladesh Golam Rahman told The Business Post that the real inflation rate was more than the BBS rate. The price of all kinds of essential is high in the kitchen markets, he added.

“The real picture of food and non-food inflation is different from the data released by the government. The government should take proper steps to tackle the inflation of the country,” he observed.

Distinguished fellow of Centre for Policy Dialogue Professor Mustafizur Rahman said prices of all kinds of commodities increased in the global market and so did the inflation rate in the country.

Import and transport costs have also increased causing the inflation rate to go up. Transport cost of exporting goods has also increased, he also said.

As the inflation rate went up all over the world it also jumped up in the country, he added.

The government should take steps to increase the income level of people through creating employment to tackle the inflation, he suggested.