Inflation drops

Inflation dropped to a 19-month low in December on the back of a fall in prices of both food and non-food items, official data showed.

Last month, inflation stood at 5.35 percent, down two basis points from 5.37 percent in November, according to the Bangladesh Bureau of Statistics. The last time inflation reached such a level was in March 2017, when it was 5.39 percent.

Planning Minister AHM Mustafa Kamal, while unveiling the monthly consumer price index at his ministry yesterday, said inflation did not go up in December, when parliamentary elections took place.

Analysts had warned that electoral expenditure would put pressure on inflation in the coming months.

Inflation has been sliding for the last couple of months because of a decrease in the prices of food and non-food items.

In December the price of sugar reached a 10-year low, according to Kamal.

The minister is hopeful of an ease in inflationary pressure in the coming days. 

According to the BBS data, food inflation was slightly down to 5.28 percent in December from 5.29 percent a month ago. Non-food inflation fell four basis points to 5.45 percent from 5.49 percent in November.

Rural inflation remained unchanged in the month from November while urban inflation dropped to 6.14 percent from 6.21 percent in November.

Exerts said though inflation was still low, it would be a short-term challenge for the new government because of volatility in the financial market.

The government has targeted to keep inflation within 5.6 percent in the current fiscal year of 2018-19.