The inflation rate for the month of January this year dropped to 5.02% from 5.29% in the previous month, according to a report compiled by the Bangladesh Bureau of Statistics (BBS).
The dip in the overall inflation rate is attributable mainly to a 0.22 percentage points drop in the non-food inflation rate that fell to 4.69% in January from 5.21% in December.
Planning Minister MA Mannan revealed the report at a press briefing held at the NEC conference room in Dhaka following a meeting of the Executive Committee of the National Economic Council (Ecnec).
The inflation rate in the first month of this year saw a substantial drop compared to 5.57% in the same month a year ago, the minister noted, adding the rice market was volatile last month but the government has taken necessary measures to ensure ample supply and proper price of the food item.
Meanwhile, inflation of food items dropped by 0.11 percentage points to 5.23% month-on-month in January this year, said Minister Mannan, expressing hope that food inflation will drop further in coming months.
The report says the prices of a number of vegetables, spices and eggs were low in January, causing the food inflation rate to drop.
Moving average inflation for last month stood at 5.64%, which was 5.60% in the February 2019-January 2020 period.
The January inflation rate of 5.05% indicates that a commodity that cost Tk100 last year will now cost Tk105.02. A person will have to buy a lower volume of the commodity if his income remains static.
The BBS also found a 6.19% growth in wages last month.
Rural general inflation stood at 5% in January this year, down by .028 percentage points from 5.28% in December last.
The non-food inflation rate in rural areas declined to 4.15% in January from 4.67% in December.
Food inflation in rural areas dropped by 0.11 percentage points to 5.23% in January from 5.34% a month earlier.
Urban general inflation stood at 5.05% in January, dropping by 0.26 percentage points from 5.31% in December.
Non-food inflation in urban areas decreased by 0.52 percentage points to 5.41% in January from 5.93% in the previous month.
Food inflation in urban areas stood at 4.72% in January compared to 4.77% in December.