The point-to-point inflation in October fell by 0.07 percentage points to 5.47 percent as a result of price fall in non-food items and some food commodities offsetting the price jump of onion by nearly 110 percent.
Prices of onions skyrocketed up to Tk 150 a kilogram in October, increasing from Tk 70 a kg to Tk 80 a kg in late September. Onion prices jumped to Tk 120 a kg overnight on October 1 following India’s onion export ban imposed on September 29.
According to the Bangladesh Bureau of Statistics (BBS) data, inflation dropped to 5.47 per cent in October last from 5.54 percent in the previous month.
Planning Minister MA Mannan said that inflation in the last month dropped as the prices of fishes and some vegetables had fallen. The minister also explained that the rise in price of onion was compensated by the falling down of vegetable items and fishes last month which led to downward trend of the Consumer Price Index.
According to the BBS, the non-food inflation at the national level fell to 5.45 percent in October from 5.92 percent in September. However, the food inflation increased to 5.49 percent last month from 5.30 percent in the previous month.
The BBS data showed that the point-to-point inflation both in rural and urban areas also fell in October.
In the rural areas, the inflation in October was recorded at 5.36 percent compared to 5.41 percent per cent in September. The food inflation in villages increased slightly to 5.56 percent last month from 5.40 percent in September. However, the non-food inflation dropped to 4.96 per cent in October from 5.42 per cent in the previous month, the BBS data showed.
In the urban areas, the inflation on the point-to-point basis rose to 5.67 percent in October from 5.80 percent in the previous month. The food inflation in the cities increased to 5.31 percent last month from 5.10 percent in September. The non-food inflation in urban areas, however, fell to 6.09 percent last month from 6.61 percent in the previous month.
The government has set a target to keep the inflation rate within the limit of 5.5 percent in the current fiscal year (FY) 2019-20. It was able to contain it at 5.48 percent last fiscal year, comfortably below the target of 5.6 percent.
Moving average of inflation for the last 12 months dropped to 5.50 percentage from 5.63 percentage during the previous 12 months.