Inflation keeps going up

The general point-to-point inflation rate has increased 0.05 percentage point to 5.59 per cent in September 2021 compared to the previous month.

The inflation rate was 5.54 per cent in August and 5.36 per cent in July this year, the Bangladesh Bureau of Statistics (BBS) revealed on Thursday. The general point to point inflation rate was 5.64 per cent in June 2021.

Aside from the 5.59 per cent overall inflation, Bangladesh also recorded 5.21 per cent food inflation and 6.19 per cent non-food inflation this September, BBS data says, adding that food inflation increased at 0.05 percentage point in September 2021 from 5.16 per cent this August.

The non-food inflation rate also increased at 0.06 percentage point in September from 6.13 per cent in August 2021. Moreover, the inflation in rural areas rose at a higher rate than that of the urban areas last month.

In September, the rural inflation increased to 5.77 per cent from 5.71 per cent in August. The food inflation in the rural areas was recorded at 5.74 per cent last month, up from 5.67 per cent in August.

Non-food inflation also increased to 5.84 per cent in September in rural Bangladesh from that of 5.79 per cent in August.

Urban inflation increased slightly to 5.25 per cent in September from that of 5.22 per cent in August. Food inflation in urban areas was recorded at 4.03 per cent in the last month, up from 4.02 per cent in August.

Non-food inflation in urban areas increased to 6.65 per cent in September from 6.59 per cent in the August.

Discussings the issue, distinguished fellow at the Centre for Policy Dialogue Prof Mustafizur Rahman told The Business Post, “All kinds of commodity prices have increased in the global market, causing the inflation to go up in the country.

“The local currency has been devaluated against the US dollar, standing at Tk 0.85 in the last three months. This is a major cause for the high rate of inflation. Import and transportation costs have increased too, causing the inflation rate to go up further.”

He further said, “Demand for essential goods have increased at consumer level after easing of the Covid-19 restrictions. Inflation has increased all over the world, so it jumped in Bangladesh as well.”