Bangladesh inflation keeps falling

Bangladesh’s inflation continues falling on the back of a drop in international fuel and food prices.

The annual inflation dropped for the third consecutive month to 6.6 percent in October this year from 6.84 percent of September.

In June, the closing month of the last fiscal year, the rate was 6.97 percent and it inched up to 7.04 in July. The rate then declined to 6.91 percent in August.

Planning Minister AHM Mustafa Kamal disclosed the data at a press conference in Dhaka on Thursday.

He attributed the inflation decline to the decrease in fuel and food prices in international market

However, food inflation increased in October despite a fall in overall inflation.

Point-to-point food inflation was 5.63 percent in September and it inched up to 5.74 percent in October.

Explaining the reasons for the decline in overall inflation, the planning minister said: “Inflation is maintaining downward trend in India too. It has influenced inflation here as several of our food items are imported from India.”

“Apart from that, prices of fuel and several food items including edible oil and sugar are falling in the international market. It has positively impacted the inflation,” he added.

Kamal was hopeful that the inflation would decline to 6 percent at the end of 2014-15 FY.

Finance Minister Abul Maal Abdul Muhith, in his budget speech, hoped that the inflation would be pulled below 7 percent.