Bangladesh records lowest inflation rate in a decade

The inflation rate in the 11 months of the ongoing fiscal ending on June 30 has slightly dropped in Bangladesh, pushing the average inflation to its lowest in a decade.

The point-to-point inflation rate (monthly) fell to 5.45 percent in May.

It means a product or service that cost Tk 100 in May last year now costs Tk 105.45.

On a point-to-point basis, the inflation rate was 5.61 percent in April and 5.65 percent in March.

The average inflation rate in the past one year – from May 2015 to May 2016 – was 5.97 percent.

It was 6.40 percent between May 2014 and May 2015.

Planning Minister AHM Mustafa Kamal disclosed the figures and made the observations while releasing the monthly inflation update of the Bangladesh Bureau of Statistics (BBS) at a media call at the National Economic Council (NEC) on Monday.

He attributed the drop in inflation in May to massive Boro harvest and stability in the prices of essentials in the international market.

Kamal said uninterrupted import and domestic productivity had also played a role in bringing the general inflation down.

At the beginning of current 2015-16 financial year, the government had targeted to bring inflation down to 6.2 percent.

Referring to the inflation rate in May, the minister hoped it will remain under the target rate when this fiscal ends.

He said the overall inflation on a point-to-point basis in rural areas declined to 4.59 percent in May. It was 4.75 percent in April.

The overall inflation in urban areas also declined to 7.06 percent in the period. It was 7.22 percent in April.

In May, food inflation fell to 3.81 percent against 3.84 percent in April.

Non-food inflation also dropped to 7.92 percent last month from April’s 8.34 percent.

Kamal added that the drop in the inflation rate had also led to the increase in wage rates in May. On a point-to-point basis, the wage rate went up 6.07 percent from April’s 6.13 percent.