Food costs have decreased, bringing the nation’s total price inflation down to 10.89%. Food inflation decreased from 13.8% in November to 12.92% in December. The total inflation rate decreased from 11.38% in November to 10.89% in December as a result of the fall in food costs.
Former Bangladesh Institute of Development Studies (BIDS) Director General Mustafa K. Mujeri commented on the issue, telling TBS, “I think there is a seasonal influence here. As winter vegetable costs tend to decline, food inflation has dropped.
Food inflation peaked between July and October. Inflation increased to 14.10 percent during this time due to supply chain delays brought on the anti-discrimination student activities.
“The recent increase in VAT on many goods is another factor,” Mustafa K. Mujeri continued. The increase in VAT from 7% to 16% on a number of goods and services is probably going to have an effect on the market going forward.
In the meantime, non-food inflation decreased little from 9.39% in November to 9.26% in December. The Bangladesh Bureau of Statistics (BBS) reports that rural inflation in December was 11.09%, up from 11.53% in November. Inflation in cities decreased from 11.37% in November to 10.84% in December.
Urban food inflation dropped the most in terms of overall inflation. It decreased by 107 basis points, from 14.63% in November to 13.56% in December.
Source: The Business Standard
