Inflation hits 7 months high of 9.33% in Mar

The general point-to-point inflation rate has increased by 0.55 percentage point to 9.33 per cent in March this year, the highest since seven months, from 8.78 per cent in February.

Bangladesh’s inflation rose to 9.52 per cent in August last year, the highest in 11.3 years, due to rising commodity prices and record hikes in fuel prices. But it declined to 9.10 per cent in September.

The inflation rate was 8.57 per cent in January this year, according to the Consumer Price Index (CPI) and Inflation Rate and Wage Rate Index (WRI) of Bangladesh Bureau of Statistics (BBS).

Planning Minister MA Mannan revealed the data on the inflation after the meeting of the Executive Committee of the National Economic Council (ECNEC) held at the National Economic Council (NEC) conference room in the city’s Sher-e-Bangla Nagar. According to the BBS, the inflation rate was 6.22 per cent in March 2022.

The BBS said that the rate of food inflation increased due to the rise in the prices of fish, meat, vegetables, spices and tobacco products.

The minister said the food inflation rate increased to 9.09 per cent in March from 8.13 per cent in February while the non-food inflation dropped to 9.72 per cent in March from 9.82 per cent in February.

“I have said earlier that the inflation rate will soar. So, the inflation rate increased to 9.33 per cent in March. Allah is saving us that the inflation does not reach the double-digit,” Mannan said.

He also said the wage inflation rate has increased to 7.18 per cent in March while it was 7.11 per cent in February this year. The BBS inflation data, however, did not fully reflect the ongoing kitchen market scenario. The prices of essential commodities are still soaring in the country.

BBS also says that house rents, prices of furniture, household items and education materials and healthcare and transport costs have also increased.

Comparing to the last two months, essential commodity prices have increased in both the wholesale and retail markets. The prices of broiler chicken, beef, and sugar have increased substantially in the city’s kitchen markets.

State Minister for Planning Prof Shamsul Alam said, “Bangladesh’s inflation rate has increased as fuel prices are increasing in the world market. But it cannot be said whether the inflation will increase or not.”

He also said, “Our production and supply chain is good. We think that the inflation will be controlled in the country.”

About CPD and Sanem, the state minister said the official data cannot be comparable with that of CPD and Sanem. Their intention is always to provide negative data, he added. Earlier on March 12, the state minister told newsmen that the country’s inflation has become ‘uncomfortable’ but it’s still not at a hyper level in terms of economy.

Zimbabwe and Pakistan have 300 per cent and 40 per cent inflation respectively, he said, adding that Bangladesh’s inflation is mainly based on production costs. “It may take five-six months to reduce the production costs.”

Responding to the latest data, Consumers Association of Bangladesh President Golam Rahman told The Business Post that the inflation statistics of BBS did not reflect the real scenario in line with the prices of daily essentials in the kitchen markets.

“The real inflation rate is more than the BBS data because the prices of all kinds of essentials are high. The inflation situation has significantly worsened and it has already impacted negatively the lives of low and middle-income people in the country,” he said.

The government should step up the monitoring system in both the wholesale and retail markets to stabilise food inflation, he said, adding that the government should ensure smooth supply of products in the markets.