Inflation cools off in Nov
General inflation fell to 5.52 per cent in November, bucking a rising trend, driven by a significant drop in food prices, official data showed yesterday.
The average Consumer Price Index (CPI) had risen to 6.44 per cent in October, the highest in at least five years, led by a sharp increase in the price of food items.
This had been the third consecutive monthly increase as recent floods and rains damaged crops and pushed up the prices of rice and vegetables.
But November's figure is 92 basis points lower than the CPI in October and is the lowest in six months, data from the Bangladesh Bureau of Statistics (BBS) showed.
Food inflation declined 1.61 percentage points to 5.73 per cent, and non-food inflation rose 19 basis points to 5.19 per cent.
There was an improvement in November with headline inflation declining due to a noticeable fall in food inflation, said Zahid Hussain, a former lead economist of the World Bank's Dhaka office.
"This implies an easing of the erosion of the purchasing power of the poor and vulnerable population."
Hussain said the decline in food inflation perhaps reflected stable rice prices and the arrival of winter non-rice produce to the market.
"Ensuring the functioning of the supply chain amid the rising coronavirus infection rate will be critical for maintaining price stability."
The headline inflation is still above the fiscal year's target of 5.4 per cent.
The price of coarse rice fell marginally to Tk 52.23 a kg from Tk 52.25 a month ago in markets in Dhaka, BBS data showed.
It was Tk 49 in September this year and averaged Tk 45.51 in the last fiscal year.
The price of pulses and meat rose, and that of fish dropped.
Good quality soybean oil became expensive by Tk 5 a litre, according to the BBS.
The price of dry chilli jumped to Tk 390 a kg from Tk 370 a month ago. It averaged Tk 235 a kg last fiscal year.
The price of onion dropped to Tk 88.21 a kg from Tk 92.65 in October.
The national statistical agency said inflation in rural areas was down 1.12 percentage points to 5.55 per cent from 6.67 per cent in October.
Food inflation dropped 1.72 percentage points to 6.01 per cent. Non-food inflation rose three basis points to 4.65 per cent.
Urban inflation declined 56 basis points to 5.47 per cent, led by 1.37 percentage points decrease in food inflation, which stood at 5.11 per cent.
Non-food inflation in the urban areas rose 39 basis points to 5.90 per cent in November, BBS data showed.
The general wage rose seven basis points to 6.10 per cent in November.
The wage in the agriculture sector was up 10 basis points to 6.34 per cent from a month ago, according to the Wage Rate Index. Wages in the industrial sector rose one basis point to 5.52 per cent.
The wage increased six basis points to 6.11 per cent in the service sector. It fell two basis points to 4.51 per cent in the construction sub-sector.
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