Inflation fell 45 basis points to a 41-month low of 5.62 percent in February from the previous month, propelled by a decline in food and non-food inflation.

Planning Minister AHM Mustafa Kamal released the data yesterday.

Food inflation stood at 3.77 percent in February, down from 4.33 percent in January, according to data from Bangladesh Bureau of Statistics.

After October 2012, food inflation was the lowest in February.

Non-food inflation decreased 28 basis points to 8.46 percent in February from January, although it increased in the last several months.

Kamal said the prices of most of the commodities fell in international and local markets. As the exchange rates remained stable, the prices of imported goods did not go up which contributed to the fall in inflation.

A good harvest of aman paddy and the falling international commodity prices caused the decline in food inflation, a Bangladesh Bank official said.

However, the International Monetary Fund in its recent report said inflation is expected to edge up in fiscal 2016 to fiscal 2018 on account of higher public sector wages and a one-off effect from the introduction of the new VAT law.

The report, which was released in the first week of February, also said headline inflation should fall gradually toward 6 percent by fiscal 2019-20, assuming that monetary policy stays prudent and supply bottlenecks eased.

Amid the general signs of tepid demand, the increase in non-food inflation likely reflects one-off factors such as higher minimum wage in the garment industry and recent electricity and gas price hikes, the IMF said.

Non-food inflation decreased in February but still it is high.

Despite lower global oil prices, domestic retail fuel prices have not been reduced.

The Bangladesh Bank also kept its latest monetary policy stance slightly cautious, keeping in mind the issue of non-food inflation and core inflation.

“Based on the conflicting signals from general inflation and core inflation, we have decided to remain on our partly cautious but generously supportive stance for inclusive, sustainable output growth,” it said in the monetary policy statement.