The situation in rural areas is particularly grave as food inflation there reached 14.84 percent in March from 13.40 percent in February while food inflation in urban areas rose to 11.66 percent in March from 11.12 percent in February, according to a
report of the Bangladesh Bureau of Statistics released on Monday.
The country's general inflation that included food and non-food inflation, on the other hand, picked up to 10.49 percent on point to point in March from 9.79 percent in the previous month, said the report.
The rate of general inflation was 8.78 percent in March, 2010.
According to the report, the rate of food inflation was so severe, the decrease in non-food inflation could not pull down the general inflation in March.
The non-food inflation came down to 4.32 percent in March from 4.36 percent in February. The rate was 5.60 percent in March 2010.
The report showed that although the rate of food inflation was 10.80 percent in March 2010, it soared to 13.87 percent in March this year as prices of major food items increased sharply.
An official of the BBS told New Age that price hike of rice, edible oil, sugar and other food items contributed to the rising inflation in last one year.
Center for Policy Dialogue (CPD) executive director Mustafizur Rahman termed the situation a critical concern for the macro-economic stability.
He told New Age that rising inflation, especially food inflation, is a major problem for the economy.
He said, 'High inflation rate will be reflected in wages, bank deposit and lending rate and it will undermine the macro-economic stability.'
Global inflation has also contributed to the country's inflation, he added.
He is hopeful that the Boro rice production would help to reduce the inflationary pressure in the next two months.
Bangladesh Institute of Development Studies research director Zaid Bakht told New Age that the country is now passing through a crucial time for the high inflationary pressure.
'Rising import cost and high prices of oil and other commodities in the international market are pushing the inflation rate up.'
He said, 'Boro production may ease the pressure for a short time but the rate of inflation may rise further.'
'Inflationary pressure may continue in the coming months due to balance of payments pressure and budget deficit and the government's borrowing from banks,' he warned.
According to the BBS report, general inflation in the nine months of the current 2010-11 fiscal year, on the other hand, hit 8.27 percent on the back of soaring food costs, above the government's target of 7 percent for this fiscal year.
The average inflation in 2009-2010 was 7.31 percent, in 2008-09 it was 6.66 percent and in 2007-2008 it was 9.93 percent.
Bangladesh Bank statistics show that in the last 10 years average inflation was 6.31 percent. The average inflation from 2000-01 to 2009-10 fiscal year was 6.31 percent while food inflation was 7 percent and non-food inflation was 5.28 percent.
According to the latest Asian Development Bank outlook 2011, food share in consumer price index is the highest in Bangladesh—at 58.8 percent.
Source: New Age
No comments:
Post a Comment