Inflation back in double digits

The point-to-point rate of inflation soared to 10.04 percent in June, driven by high oil prices on the international market and natural disasters in Bangladesh.
The inflation rate in June increased 2.6 percentage points from the month ago. In May, the rate was 7.44 percent, according to Bangladesh Bureau of Statistics.
The inflation rate had remained above the double-digit mark from July last year and reached close to 12 percent in December 2007, before it went down to 7.66 percent in April, despite soaring commodity prices on the kitchen market.
The all-year inflation rate was 9.94 percent in the last fiscal year, exceeding a government estimate of 9 percent. In fiscal 2006-07, the average inflation rate was 7.2 percent.
Volatility on the global oil and commodity markets are the primary contributing factors behind high inflation in Bangladesh, said the central bank in its recent report. The report also mentioned recent floods as one of the reasons for a price hike on the local market.
Although the BBS figure showed a lower inflation rate in the April-June period, rice prices were significantly high. Coarse rice was sold at Tk34 to Tk36 per kg in the period.
Prices of major commodities slightly came down yesterday, compared with last week, according to the Consumers Association of Bangladesh (CAB). The CAB report, however, said average year-on-year rice prices increased by more than 40 percent.
Prices of other commodities such as flour, edible oil, onion, egg and powder milk also increased 30 percent to 40 percent on average.