Point-to-point inflation hits 7.56% in June

The general point-to-point inflation rate in Bangladesh rose by 0.14 percentage point to 7.56 per cent in June 2022, compared to May the same year. Besides, the food inflation too rose by 0.07 percentage point to 8.37 per cent in June 2022.

On Tuesday, the Bangladesh Bureau of Statistics (BBS) revealed the Consumer Price Index (CPI), Inflation Rate and Wage Rate Index (WRI) in Bangladesh for the month of June, which is the source of this data.

The general point-to-point inflation rate was 6.34 per cent in March, 6.29 per cent in April and 7.42 per cent in May this year. The inflation recorded in June 2022 is the highest in the last eight years – which was 6.97 per cent in June 2014.

Meanwhile, Bangladesh’s food inflation was 8.30 per cent in May, and 6.23 per cent in April. The non-food inflation was 6.33 per cent in June, and 6.08 per cent in May, according to the BBS data.

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

In June, the rural inflation increased to 8.09 per cent from 7.94 per cent in May. The food inflation in the rural areas stood at 8.93 per cent last month, up from 8.84 per cent in May.

The non-food inflation increased to 6.51 per cent in June in rural Bangladesh, compared to 6.26 per cent in May.

Meanwhile, the urban inflation increased to 6.62 per cent in June compared to 6.49 per cent in May. The food inflation in urban areas stood at 7.11 per cent last month, up from 7.08 per cent in May.

The non-food inflation in urban areas increased to 6.08 per cent in June from 5.85 per cent in May.

President of the Consumers Association of Bangladesh Golam Rahman told The Business Post that the inflation situation of Bangladesh has significantly worsened, which in turn has negatively impacted the low and middle-income people across the country.

He added, “The government should take two steps immediately. First, they should tame inflation, and second, they should appreciate Taka against the USD. If the government does not do this, the situation will continue to worsen.

“The Bangladesh Bank and finance ministry should take steps cautiously to tame the inflation in the country. The real inflation rate is more than the BBS data represents. The price of all kinds of essentials is high in the kitchen markets.”

Distinguished fellow at the Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman said, “Prices of all kinds of commodities increased in the global market, and so did the inflation rate in the country.

“The local currency has been devalued against the USD. Import and transport costs have also increased, causing the inflation rate to go up. Transport costs of exporting goods have gone up as well.”

As the inflation rate rose all over the world, it also jumped up in the country, he said, recommending that the government should take necessary steps to increase the income level of people by generating more employment, which will help tackle the rising inflation.