The central bank governor and a top economic researcher have different views on whether inflation will come down amid the price fall on international market as July saw another jump in the official rate to nearly 11, reports bdnews24.com

Inflation accelerated again to 10.82 percent in July due to what the Bangladesh Bank governor said price hike of commodities on international market.
 
According to Bangladesh Bureau of Statistics, point-to-point inflation rose 0.72 percent year-on-year in July from 10.10 percent last year.
 
"It's all down to the international market," governor Salehuddin Ahmed told bdnews24.com.
 
"The country is now going through a kind of transitional period. Demands of people have gone up. Besides, the flow of money on the markets is very high," the governor said.
 
Salehuddin Ahmed hoped the rate of inflation would come down soon as prices of essentials dropped on the international market.
 
Dr Zaid Bakht, senior research director of Bangladesh Institute of Development Studies, disagreed with the central bank supremo.
 
"Not in the next few months," Dr Bakht told bdnews24.com. "Prices of essentials dropped on international market, but it did not have any impact on the local market.
 
"Besides, 20 percent dearness allowance for the government employees would increase flow of money," the BIDS director said.
 
He said people were now buying commodities more than they need on speculation that prices might increase further ahead of the national polls planned for this December.
 
Programmes under social safety net in addition to a Tk 2,000 crore employment generation scheme may push the inflation rate further up, Dr Bakht said.
 
The governor said the inflation showed a downtrend in April-May but started to accelerate in June.
 
In June, the inflation rate was 10.04 percent.
 
The BBS sent the details on inflation to the ministry of finance and Bangladesh Bank on Thursday.
 
The governor said 10.82 percent inflation was not dangerous, given the economic situation in the world.
 
"Inflation rates in India, Pakistan and Sri Lanka are higher than ours," he argued.
 
In April this year, the government claimed inflation was down to 7.66 percent from 7.44 percent in May.
 
According to the BBS, food inflation rate was 13.19 percent in July and inflation in non-food sector was 5.94 percent. In June, food inflation was 14.10 percent and non-food inflation was 3.54 percent.

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