Inflation jumps to 8.78pc in February

The country’s inflation rose by 0.21 percentage points to 8.78 per cent in February from 8.57 per cent in January after witnessing a downtrend over the last five months, according to the latest data from Bangladesh Bureau of Statistics (BBS).

Both overall inflation and food inflation increased significantly while non-food inflation saw a slight rise.

Previously, inflation reached 11-year high to 9 per cent in August last year. Since then, inflation continued to fall.

According to the BBS, food inflation also increased to 8.13 per cent in February from 7.76 per cent in January while non-food inflation rose by 0.02 percentage points.

According to the latest BBS data, pressure of inflation is more in the rural areas than the urban areas. In February, overall inflation increased to 8.80 per cent in the rural areas and it stood at 8.75 per cent in urban areas.

Food inflation and non-food inflation rose to 8.19 per cent and 9.98 per cent in villages respectively while the figures stood at 7.98 per cent and 9.61 per cent in cities.

Several factors contribute to the rise of inflation, Centre for Policy Dialogue (CPD) research director Khondaker Golam Moazzem said adding, global and domestic economic situations are responsible for the rise of inflation.

Other than this, it is necessary to monitor the market regularly to prevent market manipulation and hoarding in order to check the inflation from further rise, he added.

“We are in a circle of high inflation. So, a slight change in inflation does not indicate a drop in our living expenses,” Golam Moazzem said adding, it would not be easy to leave this circle of inflation because of overall import and product situation.