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Inflation soars further in July

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Staff Reporter

The rate of inflation soared further in July this year with the non-food items showing a rising trend as the overall inflation rate notched 7.04 percentage point, up from 6.97 percentage point in June last.

“The average point-to-point inflation rate in July stood at 7.04 percent in July," said Planning Minister AHM Mustafa Kamal on Tuesday.

Kamal said this while releasing the monthly Consumer Price Index (CPI) at the NEC-II in city's Sher-e-Bangla Nagar area after the day's Ecnec meeting at the NEC conference room.

The general point-to-point inflation rate in July, 2013 was 7.85 percentage point.

According to the BBS data, the point-to-point food inflation rate in July this year, however, declined to 7.94 percentage point down from 8.00 percentage point in June, 2014. On the other hand, the point-to-point non-food inflation rate increased to 5.71 percentage point in this July rising from 5.45 percentage point in June.

In urban areas, the general point-to-point inflation rate was 7.24 percentage point in July this year which was 6.93 percentage point in the rural areas. The general inflation in urban areas in June this year was 7.42 percentage point while 6.73 percentage point in the rural areas.

The food inflation increased in rural areas in July compared to the previous month and it was 7.78 percentage point against 7.64 percentage point in June.

The non-food inflation in rural areas was also found increasing as it was 5.43 percentage point in July compared to 5.12 percentage point in June this year. In urban areas, the food inflation rate declined in July as it stood at 8.31 percentage point down from 8.87 percentage point in June this year.

The non-food inflation rate in urban areas witnessed an upward trend in July as it stood at 6.10 percentage point up from 5.91 percentage point in June this year. The national wage index rate also witnessed a 10.47 percent growth in this July with 8563.49 which was 8,501.42 in June this year.

The average inflation rate in the last one year (August 2013 to July 2014) reached 7.28 percentage point which was 6.99 percentage point during (August 2012 to July 2013) period.

Asked about the reason behind the rising trend of inflation in July, the Planning Minister attributed the reason to the month of Ramadan and the observance of the Eid-ul-Fitr.

He said the target of the government would be to contain the general inflation rate in between 7 to 7.50 percent or even lower in this fiscal year.

State Minister for Finance and Planning MA Mannan, Planning Division Secretary Bhuiyan Shafiqul Islam and Bangladesh Bureau of Statistics (BBS) Director General Golam Mostafa Kamal were present at the briefing.