Economists say the rise in diesel and kerosene prices has had an impact on the market. In early November, the government increased the price of diesel and kerosene by Tk 15 per litre. As a result, fares of all transports have gone up. This has had an impact on overall inflation.

Zahid Hossain, former chief economist at the World Bank's Dhaka office, said the rise in transportation costs has affected the commodity market. As diesel and kerosene prices have risen, so have transportation costs. Fare is being taken higher than what has been increased.

The state-owned agency revealed that prices of almost all types of daily commodities including rice, pulses, flour are higher in villages than in cities. The people of the village have to spend more money for transportation, medical treatment and furniture.

In November, a rural consumer bought a product for Tk 106.20, while a customer in the city bought the same product for Tk 105. 59. In urban areas, food inflation is 4.37 per cent, while in rural areas it is 5.90 per cent.

However, non-food inflation is higher in urban areas than in rural areas. In November, non-food inflation rose to 6.99 per cent in urban areas and 6.78 per cent in rural areas.

According to the BBS, overall inflation in the country rose to 5.98 per cent in November from 5.70 per cent in the previous month (October). Besides, food inflation rose to 5.9 per cent from 5.62 per cent in October. Non-food inflation rose to 6.17 per cent from 6.78 per cent.

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