Inflation rises to 5-year high

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.

The price of medium quality rice edged up to Tk 49.25 each kilogram in October from Tk 48.19 in the same month a year ago. The price of coarse grain remained almost unchanged at Tk 43.58 per kg last month from Tk 44 the previous month, according to data from the Food and Agriculture Organisation.

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.