Inflation rate drops

Planning Minister AHM Mustafa Kamal has said the monthly average inflation rate has dropped.

"Monthly average inflation rate has decreased as prices of commodities have dropped in international markets," he said.

He made this announcement at a press conference on Thursday.

The planning minister also talked about GDP growth, poverty reduction, and other economic indicators.

He said the monthly average Inflation rate was 6.91% on a point-to-point basis in August. In July, it was 7.04%.

But he feared prolonged floods could again push up the inflation rate.

"Fifty percent of what we consume is produced within the country. We import the rest. Price of rice has been stable in recent days. Prices of vegetables went up a bit,” he said.

The decline in inflation is being attributed to a fall in the prices of edible oil, sugar and other commodities in international markets, he added.

“Some places in the country have experienced flooding. It has not been severe till now. It's a yearly phenomenon. Without floods, there would be no silt deposition and no soil fertility," the minister said.

But he added that a prolonged spell of floods could again raise the inflation rate.

He foresaw a declining trend in inflation if the floods eased soon and the international prices of major commodities remained stable.

In his recent budget speech, Finance Minister AMA Muhith had vowed to keep the inflation rate under 7%.

In past one year, the average inflation rate had, however, risen to 7.24% from 7.19 %.