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Food inflation soars to 11-yr high PDF Print E-mail
Saturday, 12 January 2008

Staff Correspondent

Food price inflation has hit 11-year high of 13.8 per cent in November rising from 6.65 per cent in January last year, sources in the Bangladesh Bureau of Statistics said.

Point-to-point inflation crept up to 11.21 per cent in November.

Food price and overall inflation rates never reached such highs since the current inflation index was introduced in the fiscal 1995-96, according to BBS data.

The Bangladesh Bank in its January-June monetary policy statement released Thursday said that rise in the price barometer in the first half could be attributed to supply constraints caused by both external and internal factors.

'Adverse changes in prospects for domestic production and the persistently rising prices in the international commodity market led to a steady rise in the inflation rate,' it said.

Twin floods in July-September and devastating cyclone in mid November, labour unrest in the garment sector and shaky business confidence have aggravated the supply disruption and fuelled inflation during the period, the statement added.

According to the Bangladesh Bank Annual Report for 2006-07, the general wage rate increased at a rate of 4.5 per cent which is much lower than the inflation. It means that the real income of the workers is decreased by 6.71 per cent in November.

The report blamed high credit growth, increase of major commodity prices in the international market, adjustment of domestic fuel prices, price manipulation through business syndicate and loss of business confidence for high inflation.

It also blamed high export and remittance growth for rising inflation.

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