Inflation fell 5 basis points to 5.63 percent in April, compared to the previous month, on the back of a decrease in prices of food and non-food items, according to the Bangladesh Bureau of Statistics.
Last month, food inflation was down 6 basis points to 7.03 percent from a month ago, while non-food inflation declined 2 basis points to 3.49 percent.
Inflation has been on a downward path since October last year except for January when it rose 5 basis points.
Planning Minister AHM Mustafa Kamal released the data yesterday. He said the continuous fall in inflation is a good sign for the economy.
The fall will continue in the next two months and inflation will not increase even in the month of Ramadan, he said, adding that the prices of essentials would not go up in the fasting month.
According to data from the state-run Trading Corporation of Bangladesh, the price of rice went down by about 6 percent in the last one month.
In Dhaka, coarse rice sold for Tk 38 to Tk 42 per kg yesterday, down from Tk 40 to Tk 46 a month ago. Even, the price of coarse rice fell 8 percent from a year ago.
However, the price of finer quality rice is still 16 percent to 20 percent more than what it was a year ago.
According to BBS data, food inflation fell 1 basis point to 6.76 percent in rural areas. However, it decreased 17 basis points to 7.63 percent in urban areas.
In April, non-food inflation dropped 6 basis points to 3.44 percent in rural areas. The urban areas, however, saw an increase of 6 basis points to 3.57 percent.
Kamal also said the crop was damaged by prolonged floods last year. The government had no preparation at that time.
This time, the government has enough stock of food and is selling goods at fair prices.
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source: Star Business Report