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Home Around South Asia

Bangladesh’s inflation rises to 6.44pc in October, highest in 7 years

The country had the previous highest inflation of 6.78 per cent by the end of 2012-13 fiscal year

Editor by Editor
November 6, 2020
in Around South Asia, Bangladesh, Economy
Reading Time: 1min read
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© 2008 AFP FILE PHOTO: A Bangladeshi street fruit seller weighs his goods for customers, in Dhaka. (Lalage Snow/AFP/Getty Images)

© 2008 AFP FILE PHOTO: A Bangladeshi street fruit seller weighs his goods for customers, in Dhaka. (Lalage Snow/AFP/Getty Images)

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Dhaka, November 6 (The New Nation) – Bangladesh’s point-to-point general inflation rate has increased to 6.44 per cent in October, the highest in seven years, amid the coronavirus (COvid-19) pandemic.

The country had the previous highest inflation of 6.78 per cent by the end of 2012-13 fiscal year, reports bdnews24.com.

A higher rise in rural inflation rate compared with the urban one and the increase in food inflation to 7.34 per cent escalated general inflation last month, according to data published by the Bangladesh Bureau of Statistics on Wednesday.

In rural areas, inflation was 6.67 per cent while the rate was 6.3 per cent in urban areas.

In September, general inflation was 5.97 per cent and food inflation 6.5 per cent.

“It was bound to happen because the prices of all the commodities in the market have gone up,” said analyst Ahsan H Mansur.

He identified government efforts to ensure easy flow of cash amid the pandemic as a reason behind the rise in inflation.

Even Bangladesh Bank warned of the risks associated with the release of the credits from the coronavirus stimulus package that aims to help the private industries soften the blow of the pandemic crisis in order to prevent job cuts.

The central bank said in a report by the end of September that a range of expansionary fiscal and monetary policies are likely to boost economic activities in full swing in the near future.

“Extraordinarily easy financing conditions may pose upside risks for price stability in the coming quarters,” the report added.

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