Inflation hits 8-year high in May

Rising prices of essential commodities have been reflected in the government’s latest data.

Inflation surged to 7.42 percent in May, the highest in eight years and up from 6.29 percent in April, according to the Bangladesh Bureau of Statistics.

The food inflation has risen substantially to 8.30 percent in May from 6.23 percent in the previous month.

However, the rate of food inflation in rural areas increased a bit more to 8.84 percent from 6.64 per cent in April.

Bangladesh Bureau of Statistics (BBS) on Sunday released its Consumer Price Index (CPI) of May.

According to CPI update, non-food inflation eased to 6.08 percent in May from 6.39 per cent in April. In May the general inflation rate was Tk 7.42 percent which was 8.29 percent in April.

Former caretaker government’s finance adviser AB Mirza Azizul Islam told Business Insider Bangladesh that the general food inflation hiked unexpectedly because of flash-flood and international supply shock.

Besides, businessmen have attributed this abrupt rise in CPI to both internal and external factors.

Dwelling on highest food inflation in rural areas he said it meant that there was no check of price hikes by the government agencies and no pressure groups were active.

Finance Minister AHM Mustafa Kamal has said that he expects the inflation rate within 5.6 percent in the proposed budget for 2022-23 fiscal year. If that happens, general people will feel relieved.

The prices of food products had risen at record rates before the national budget was announced.