Bangladesh’s July inflation eases to 7.48 pct as global food market storm eases

Bangladesh inflation decreased to 7.48 percent in July from 7.56 percent in June, according to the latest data.

Bangladeshi Planning Minister MA Mannan on Wednesday revealed the inflation data in July.

The figure was higher than that in the same month last year when inflation stood at 5.36 percent.

According to Consumer Price Index (CPI), food inflation declined to 8.19 percent in July from 8.37 percent the previous month.

Non-food items inflation, however, increased to 6.39 percent in July from 6.33 percent in June, the data showed.

Bangladesh’s inflation in June increased to 7.56 percent, the highest in about nine years.

Against this backdrop, the minister expressed his satisfaction with the decrease in CPI in July, saying it’s good news for the government as it tried to rein in inflation in line with the budgetary target.

He said the decline in inflation is the reflection of the fall in prices of commodities in the international market and expressed hope that inflation will ease further in August.

In June, the country unveiled a record nearly 7 trillion-taka (about 70 billion U.S. dollars) national budget for the 2022-23 fiscal year starting in July and the government said it is committed to containing the rising trend of inflation by addressing inconsistencies between supply and demand.

According to the budget proposal, Bangladesh is targeting an average inflation rate of 5.6 percent in the new fiscal year.

In his budget speech, Bangladeshi Finance Minister AHM Mustafa Kamal said there has been a recent spike in prices, mainly due to external factors.

“The causes of inflation at the global level include, among others, rising inflation in trade partners, rising oil prices, depreciation of the taka against the U.S. dollar, the disruption of the global supply chain and the Russia-Ukraine crisis, all of which are largely beyond our control,” he said.

The internal factors, such as the impact of the COVID-19 pandemic, also played a part, he noted. ■