The general point to point inflation rate in April has slightly eased to 9.74 percent from the previous month although the food inflation witnessed slight increase.
According to the monthly consumer price index released by the Bangladesh Bureau of Statistics (BBS), the general point to point inflation rate in March was 9.81 percent while it was 9.67 percent in February this year.
According to the data of the BBS, the point to point food inflation has slightly increased to 10.22 percent in April, 2024 which was 9.87 percent in March.
The BBS data showed that the point to point non-food inflation rate declined slightly to 9.34 percent in April down from 9.64 percent in March. Besides, the general inflation rate at the urban level in April declined to 9.46 percent while it was 9.92 percent at the rural level.
At the rural level, the food inflation increased to 10.25 percent in April, up from 9.86 percent in the previous month, while the non-food inflation also increased to 9.60 percent in April as against 9.41 percent in March this year.
In urban areas, the food inflation also increased to 10.19 percent in April, up from 9.98 percent in March. The non-food inflation rate, however witnessed a slight declining trend with 9.01 percent in April which was 9.71 percent in March last.
The national wage index rate witnessed a 7.85 percent growth in April with 118.21 point against 7.80 percent growth with 118.00 point in March.
However, the increase in food inflation to 10.22% from 9.87% highlights a continued financial strain on household budgets, particularly for low-income families.
Ahsan H. Mansur, a former senior economist at the IMF, expressed concerns about the rising cost of essentials. “This disproportionately affects low-income families, who allocate a significant portion of their income to food. The rising cost of essentials threatens to derail our economic progress,” Mansur stated.
The government has implemented contractionary monetary policies to tackle inflation, but the effectiveness of these measures is still under observation. Mansur added that frequent policy changes by Bangladesh Bank have also impacted the results, occasionally exacerbating inflation pressures.
He also raised questions about the accuracy of inflation data. There's a discrepancy between the market prices of goods and the reported rate of inflation, which raises concerns about the data’s reliability, he explained.
Variations in inflation rates: A closer look
The data reveals a mixed picture across different areas. In rural areas, overall inflation increased to 9.92% in April, up from 9.68% in March. Food inflation in these areas rose slightly higher to 10.25%, compared to 9.86% in March. Non-food inflation also saw a rise, reaching 9.60% in April from 9.41% the previous month.
Conversely, urban areas experienced a slight relief in overall inflation, which decreased to 9.46% in April from 9.94% in March. While food inflation in urban areas rose to 10.19% from 9.98%, non-food inflation saw a significant reduction, dropping to 9.01% from 9.71%, according to BBS report.
