May inflation shows downward trend
Planning minister expects the trend to continue
The countrys general point-to-point inflation has improved slightly, after experiencing an upward trend for the last three months of the current fiscal year, as it came down to 6.19 per cent in May from 6.32 per cent in April.
A stable forex exchange rate and downward trend of oil price in the global market are the main reasons for the improvement of the countrys inflation scenario. This trend is likely to continue in the next month, planning minister AHM Mustafa Kamal said while addressing the press during a programme organised by the planning ministry at the NEC conference room yesterday.
The general point-to-point inflation rate in March was 6.27 per cent. The minister also said that the main reason for the improved inflation rate in May was due to the downward trend of the price of all sorts of goods and items in the international market, including the price of fuel. Kamal said there is no such crisis of food and other items ahead of Ramadan and the budget.
While describing the market scenario of the products, the minister said there is no mismatch in demand and supply. It could also be a reason for the lowering trend of inflation, he added. The general inflation rate was 7.04 per cent in July of the current fiscal year. It came down to 6.91 per cent in August, 6.84 per cent in September, 6.60 per cent in October, 6.21 per cent in November, 6.11 per cent in December, and 6.04 per cent in January. The general inflation rate started to rise again in February with 6.14 per cent and 6.27 per cent in March.
Apart from the general inflation rate, the rate of food inflation also registered a declining trend, while inflation in other areas witnessed an upward trend. The point-to-point food inflation at the national level went down to 6.23 per cent in May from 6.48 per cent in April, while the non-food inflation increased from 6.08 per cent in April to 6.14 per cent in May.
In urban areas, the general point-to-point inflation rate came down to 6.87 per cent in May. It was 5.84 per cent in rural areas. In rural areas, the food inflation also declined to 5.66 per cent in May from 5.99 per cent in April, while the non-food inflation increased to 6.14 per cent in May as against 6.09 per cent in the previous month.
In urban areas, the food inflation declined to 7.54 per cent in May from 7.62 per cent in April. The non-food inflation rate has, however, witnessed a rising trend, as it stood at 6.14 per cent in May, against 6.07 per cent in April.
The national wage index rate witnessed a 9.44 per cent growth in May with 9238.11 points, compared with 9169.76 points in April. The average year-to-year rate of inflation from June 2014 to May 2015 stood at 6.46 per cent. It was 7.44 per cent from June 2013 to May 2014.
Responding to a question regarding the reason behind the downward trend of inflation, Kamal said that the prices of most items, including consumer durables and intermediary items in the international market, are going down. He also said the exchange rate of Bangladesh has almost remained stable for the past five to six years. He further said that the government had previously targeted to contain inflation within 6.50 per cent in the outgoing fiscal year, with the hope that the rate would remain within target in the next month as well as in the outgoing year. Statistics and Information Division secretary Kaniz Fatema said that the market rate of laundry, cleaning, clothes, and recreation has fluctuated, which, in turn, has also led to the increase in the price of the non-food items.
Regarding the GDP target of the current fiscal year, the planning minister said political unrest has hampered the economic growth. Businessmen had to resort to air shipments, which increased the cost of product delivery, he added.
Kamal, however, said that the country is unlikely to witness 10 per cent growth of export in the current fiscal year. He attributed the failure to reach the expected level of growth to unnecessary strikes, blockades and other disturbances.
