Inflation drops to 8.85% in November
Minister hopes further fall in December
Non-food inflation in November rose to a decade's high of 9.98%, although the overall consumer price index marked a decline for the third month in a row from its August peak, according to Bangladesh Bureau of Statistics data.
The November non-food inflation rate reached double digits in rural areas, as Planning Minister MA Mannan on Monday said the overall inflation cooled off last month thanks to food prices edging down.
According to available data, non-food inflation was 10.21% on an average in FY12.
The overall inflation rate slightly came down to 8.85% in November compared to the corresponding month last year (point to point), said the minister while briefing reporters at his office Monday.
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This means products or services that were at Tk100 in November last year rose to Tk108.85 in November this year.
Overall inflation spiralled to 9.52% in August – the highest in a decade. In September, it dropped to 9.10%. The rate further decreased to 8.91% in October.
The minister said, "In other countries, headline inflations have now started to come down after reaching double digits. So, the falling trend in our country matches with the global pattern."
"After our inflation reached 9.52% in August, I forecasted that the rate would come down in upcoming months. Since then, it has decreased for three consecutive months and I am hopeful this downtrend would continue in December as well," he added.
According to the bureau of statistics, food inflation was 8.14% in November, as it was 8.50% in the previous month.
"Winter vegetables have started arriving in the market. Besides, the price of other items including fuel oil has started to decline in the international market. I think Bangladesh inflation has started to cool off as the local market has started to feel the global impacts," MA Mannan commented.
The bureau of statistics now calculates the inflation with the base year of FY06. The planning minister said they are working to update the base year.
According to the bureau Director Zia Uddin Ahmed, who was present at the media briefing, said the new base year will be FY22.
Non-food inflation hurting rural people more
Non-food inflation in rural Bangladesh jumped to 10.31% in November from 9.98% in the previous month.
According to the bureau of statistics, the non-food inflation fired up the overall inflation in rural areas to 8.94% from 8.92% in October.
In November, rural food inflation decreased to 8.23% from 8.38% in the previous month.
"While prices of fresh vegetables are low in villages compared to the urban counterpart, villages usually rely on cities for oil and other non-food items. Besides, the transportation costs add up to the commodity price in rural areas," statistics bureau Director Zia Uddin Ahmed said while explaining the rise in non-food inflation in rural Bangladesh.
Non-food inflation also increased in urban areas in November as the rate rose to 9.54% in November from 9.07% in the previous month. Food inflation in urban areas eased to 7.95% from 8.75% in October.
Core inflation in urban areas stood at 8.70% in November, from 8.90% in the previous month.
Wage growth ticks up
The point-to-point wage rate growth trend in October was 6.91%, which increased to 6.98% in November, according to the bureau of statistics.
The minister said the country's economic growth will return almost to the pre-Covid level soon amid falling prices and growing wages.
He is optimistic that the economic growth could be around 7% percent of the gross domestic product (GDP), even if the Russia-Ukraine war prolongs.
