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Inflation down, marginally
FE Report
11/9/2005
The country's point-to-point inflation rate, calculated on the basis of consumers' price index (CPI), has come down to 7.01 per cent in September from 7.35 per cent in June, 2005.
However, the inflation rate has reached 6.83 per cent in September last from 6.49 per cent in June on a 12-month average basis.
The figures were disclosed by the Bangladesh Bank (BB) Governor, Salehuddin Ahmed, while speaking at a discussion meeting organised by the Economic Reporters' Forum (ERF) at National Press Club in Dhaka Tuesday.
The inflation rate has started falling down due to prudent monetary policy of the government. It will fall further in the near further.
"The inflation rate came down to 7.01 per cent in September last from 7.93 in August 2005, although the food price led inflation still remains high," the BB governor noted.
He also said the government has already taken measures so that the inflation rate does not move above six per cent.
A number of factors like shortage of some food items in the domestic market, energy price adjustment, depreciation of the Bangladesh Taka (BDT) vis-à-vis the US dollar and other currencies, and rise in prices of some commodities in the global market contributed to the rise in inflation rate, sources in the central bank observed.
The depreciation of BDT by around five per cent during the December 2004-June 2005 period combined with the hike in prices of some items including oil in the world market directly affected prices of imported commodities, the sources added.
Earlier, the central bank increased the ceiling of the cash reserve requirement (CRR) and statutory liquidity ratio (SLR) to reduce the flow of liquidity in the market and tame inflationary trend in the country.
Economists have already suggested that the government should take effective measures to keep the rate of inflation within 5.0-6.0 per cent range.
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