Published: Friday, April 5, 2013

Inflation falls on low food prices

Consumer Price Index drops to 7.74pc

Inflation falls on low food prices

Inflation dropped 0.13 percentage points to 7.74 percent in March on the back of falling food prices.
In its weekly economic update, Bangladesh Bank linked the small decline in inflation to a drop in the price of everyday essentials on the world market and stabilisation of fuel prices in both local and international markets.
Food inflation dropped 0.04 percentage points to 8.30 percent, while non-food inflation 0.33 percentage points to 6.79 percent, according to Bangladesh Bureau of Statistics.
“Non-food inflation has been on a downward path since October, which is welcome news as it is very much in line with the monetary policy goals,” a BB official said.
The government is likely to hit the inflation target of 7.5 percent for fiscal 2012-13.
“However, if the political unrest continues achieving the target would be difficult,” a BBS official told The Daily Star.
The International Monetary Fund mission that visited Bangladesh from March 20 to April 2 advised the finance ministry and BB to maintain both the public and private sector credit as per the monetary policy, to meet the target.
“The central bank remains committed to maintaining a restrained monetary policy to keep inflation in check, while providing adequate space to support private credit growth,” the IMF said in a statement.
However, a finance ministry official said inflation is likely to increase in future if political turmoil in the Middle East and geo-political uncertainty centring on Iran take a turn for the worse.