Inflation drops in July

Inflation in Bangladesh dropped 28 basis points to 5.36 per cent in July on the back of associated decreases in both food and non-food items, easing pressure on the wallets of consumers.

It stood at 5.64 per cent in June, according to data from the Bangladesh Bureau of Statistics (BBS).

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Food and non-food inflation helped bring down the Consumer Price Index, a measure of the average change in prices of a range of goods and services purchased by consumers.

In July, food inflation fell to 5.08 per cent, down 37 basis points from that of the previous month in spite of the fact that prices of coarse rice had crept up, according to data from the Department of Agricultural Marketing.

The BBS said non-food inflation declined 14 basis points to 5.80 per cent in July from that a month ago.

It said prices of egg, broiler chicken meat and various vegetables such as brijal, sweet, pointed and spotted gourd; green cucumber, green papaya, lady's finger, carrot and lemon had dropped.

On the other hand, consumers had to spend more behind onion, ginger, garlic, cinnamon, cardamom and cumin.

Meanwhile, prices of flour, sugar, salt and noodles and non-food products such as clothes and medicine were stable, it added.         

However, Ghulam Rahman, president of the Consumers Association of Bangladesh, said the decline did not bring any benefit for the masses.

"Many people lost jobs while incomes of many declined as economic activities suffered due to the Covid-19 induced lockdown," he said.

In July, inflation in rural areas decreased 31 basis points to 5.53 per cent, driven by a fall of 48 basis points in food inflation, which stood at 5.56 per cent. Non-food inflation went up by one basis point to 5.47 per cent.

Urban consumers also experienced reduced pressure from price spikes as reflected in inflation. Overall prices declined 23 basis points to 5.06 per cent in July.

Food inflation decreased by 13 basis points to 4.14 per cent while non-food inflation fell by 35 basis points to 6.24 per cent.