New Delhi, March 10 (IANS) Overall inflation in Bangladesh rose to 9.13 per cent in February from 8.58 per cent in January, touching the highest level in 10 months, a report has said.
The surge in inflation was driven by rising food prices ahead of Ramadan and election‑related spending, the report from Daily Star said.
The Consumer Price Index rose above 9 per cent for the first time since May last year, marking the fourth consecutive monthly surge, since inflation touched a 39‑month low of 8.17 per cent in October, according to data released by the Bangladesh Bureau of Statistics.
Food inflation jumped to 9.30 per cent in February from 8.29 per cent in January, while non‑food inflation edged up to 9.01 per cent from 8.81 per cent, indicating pressure in housing, transport and healthcare, the report said.
Bangladesh Bank maintained a hawkish monetary policy stance aimed at curbing demand-driven price increases, while inflation consistently remained high.
“We cannot look at this solely through the lens of monetary policy and a part of this increase seems linked to election‑related demand,” the report cited Zahid Hussain, former lead economist at the World Bank’s Dhaka office.
Hussain noted that campaign spending including snacks and serving biryani to influence voters boosted the food component in inflation and contributed to higher prices.
He said supply side factors also contributed after a major disruption at the ports in February increased inflation expectations and hoarding tendencies.”
Ashikur Rahman, principal economist of the Policy Research Institute warned that any premature easing by the central bank could reignite inflation and negatively impact macroeconomic stability.
The media house had earlier reported that Bangladesh could fall behind peer nations and competing economies without radical reforms in tariffs and trade facilitation within five years.
Commerce Secretary Mahbubur Rahman noted non-tariff barriers continuing to impede trade and he called on the National Board of Revenue (NBR) to prioritise simplification of the trade regime.
—IANS
aar/pk
