Inflation drops to 8.57%

The general point-to-point inflation decreased by 0.14 percentage point to 8.57 per cent last month compared to December 2022.

Inflation was 8.71 per cent in December and 8.85 per cent in the previous month, according to the Consumer Price Index (CPI), Inflation Rate and Wage Rate Index (WRI) of the Bangladesh Bureau of Statistics (BBS), which revealed the data on Monday.

According to the data, food inflation was 7.76 per cent and non-food inflation was 9.94 per cent in January. Besides, food inflation was 7.91 per cent in December 2022 while non-food inflation was 9.96 per cent.

However, experts say the BBS inflation data did not reflect the real picture of the prices of commodities in kitchen markets. The prices of essentials are still higher in kitchen markets across the country than what the BBS data shows.

About the matter, State Minister for Planning Prof Shamsul Alam told reporters after a programme on Monday inflation is decreasing while the wage rate index value is increasing in the country.

The wage index rate was 7.06 per cent in January while it was 7.03 per cent in December last year.

Inflation was 9.10 per cent in September 2022 and 9.52 per cent in August, which was the highest in 11.3 years, the BBS data shows.

In the FY23 budget, Bangladesh set the inflation target at 5.6 per cent for this fiscal year.

Meanwhile, rural inflation decreased to 8.67 per cent in January from 8.86 per cent in December 2022. Food inflation in rural areas was 7.92 per cent last month, down from 8.11 per cent in December 2022. Non-food inflation decreased to 10.12 per cent in January in such areas from 10.29 per cent in December last year.

On the other hand, urban inflation decreased to 8.39 per cent in January from 8.43 per cent in the previous month. Food inflation in urban areas was 7.41 per cent last month, down from 7.45 per cent in December. However, non-food inflation in such areas decreased to 9.48 per cent in January from 9.51 per cent in December.

The BBS said food inflation decreased due to the reduction in the prices of fish, meat, vegetables, spices, and tobacco products. Apart from this, house rent as well as the prices of furniture, home appliances, and educational materials fell. Medical care and transportation costs also went down.