Daily essentials dearer in August

Inflation rose to 5.54% in August, the second month of the current fiscal year, from 5.36% in July.

That is a 0.18 percentage rise in both food and non-food prices in August compared to the previous month.

According to Bangladesh Bureau of Statistics (BBS) data, food inflation is currently at 5.16%. The inflation rate of non-food goods is 6.13%. 

In the previous month, food inflation was 5.08% and for non-food items, it was 5.80%. 

This increase in the cost of goods has affected both urban and rural areas.

Inflation in rural areas stood at 5.71% in August, up from 5.53% in July.

The inflation rate in urban areas increased to 5.22% from 5.06% in July.

Prices of almost all kinds of rice, eggs, lentils, edible oils, chilli, sugar, some varieties of fish, garlic, onion, ginger, and turmeric went up in August, according to the BBS.

On the other hand, consumers spent a bit less on potatoes, brinjal, okra or ladies’ fingers, and green papaya as their prices dropped.

A BBS official told the Dhaka Tribune: “The data came from the BBS survey conducted across the country. Usually, on the 12th and 18th of every month, we conduct this survey across the country.” 

“However, for more accurate information, it has now been extended by two more days. Now it is operated till the 11th to 19th of every month. The same thing happened in August. At this time, this information has been taken from two markets in cities and villages of 64 districts of the country,” the official added.

This calculation has been made on the price of the products in the market at that time, he further said.

BBS inflation data for the last seven months shows that this aspect of the economy is behaving erratically. Every month, the ratio is going up and down.

In February this year, it was 5.32%, jumped in March to 5.47%, grew in April to 5.56%, but fell in May to 5.26%. In June, the last month of the last financial year, it went back up to 5.64%. 

However, in the first month of the new financial year, July, it fell to 5.36%. And in August, it jumped up again to 5.54%.

The BBS regular release titled "Consumer Price Index (CPI), Inflation Rate and Wage Rate Index (WRI) in Bangladesh" revealed that the average inflation for the last 12 months was 5.53%, while the rate was 5.56% in the previous year.

In his budget speech, Finance Minister AHM Mustafa Kamal vowed to keep inflation at 5.3% in FY2021-22.