Inflation rose in February

Non-food inflation rose sharply in February this year on the back of an increase prices of various non-food products, including construction materials, rods and cement.

Rising food prices during the same period also had an impact on the overall inflation rate in the country.

The inflation rate on a point-to-point basis (current month over same month of last year) was 5.32% in February 2021. The inflation rate was 5.02% in January this year and 5.46% in February last year.

The Bangladesh Bureau of Statistics (BBS) revealed the data on inflation at a press conference at the BBS Bhaban in Agargaon on Wednesday.

Mohammad Yamin Chowdhury, secretary of the Statistics and Informatics Division, and Mohammad Tajul Islam, director general of the BBS, were present on the occasion.

At the press conference, Mohammad Yamin Chowdhury said, "The prices of construction materials have changed drastically. This has had an impact on overall inflation. Inflation has also risen as prices of several food products have risen."

According to the BBS, non-food inflation rose from 4.69% in January to 5.17% in February this year. The rate was 6.23% in February last year.

Meanwhile, food inflation rose from 5.23% in January to 5.42% in February this year. The rate was 4.97% in February last year.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, told The Business Standard, "Economic activities have risen sharply after the Covid-19 crisis. Demand for construction materials has also increased. In this opportunity many products are being sold at higher prices. Prices of various products including construction materials have also gone up in the international market. This too have an impact on the country's market."

"On the other hand, there is low supply of many products in the market. Prices are also rising due to this," she added.

According to the BBS, prices of rice, broiler chicken, edible oil and sugar has increased in February this year. Meanwhile, prices of potatoes, onions, eggplant, pumpkin, gourd, cabbage, cauliflower, bean, radish, tomato, carrot, grape, jujube, and various spices have come down.

Meanwhile, inflation rate in rural areas jumped from 5% in January to 5.33% in February this year. The rate was 5.44% in February last year.

Food inflation in rural areas rose from 5.46% in January to 5.72% in February this year. The rate was 5.09% in February 2020.

Non-food inflation in rural areas increased from 4.15% in January to 4.61% in February this year. The inflation rate was 6.12% in February 2020.

The inflation in urban areas also increased from 5.05% in January to 5.3% in February this year. The inflation rate was 5.48% in February 2020.

Food inflation in urban areas has risen from 4.72% in January to 4.76% in February. The rate was 4.7% in February last year.

Similarly, non-food inflation in urban areas rose from 5.41% in January to 5.92% in February. The rate was 6.36% in February last year.