Inflation rises to 5-year high

The Daily Star  November 05, 2020

Inflation rose to 6.44 per cent in October, the highest in at least five years, driven by a sharp increase in the price of food items, official figures showed yesterday.

The average Consumer Price Index climbed 47 basis points from September’s 5.97 per cent, data from the state-run Bangladesh Bureau of Statistics (BBS) showed.

This was the third consecutive monthly increase in inflation as recent floods and rains damaged crops and pushed up the price of rice and vegetables.

October’s CPI is 97 basis points higher than it was in the same month last year. General inflation has been on the upward trend since July.  Food inflation made a sharp rise, climbing by 84 basis points to 7.34 per cent, largely due to the increase in the price of rice.

It was 6.50 per cent in September this year and 5.49 per cent in October in 2019.

Non-food inflation declined 12 points to 5 per cent last month.

Rural inflation jumped by 71 points to 6.67 per cent from 5.96 per cent a month ago. Food inflation surged 1.12 percentage points to 7.73 per cent from 6.61 per cent in September.

Inflation in the urban areas edged up five basis points to 6.03 per cent. Food inflation rose 22 basis points to 6.48 per cent but non-food inflation dropped 14 basis points to 5.51 per cent.

The price of pulses and egg as well as vegetables such as potato, brinjal, lady’s finger and papaya went up in October compared to September, according to a document of the national statistical agency.

The wage rate rose to 6.03 per cent from 5.95 per cent in September.

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