The annual inflation rate increased slightly to cross the 6 percent mark again in June, up from 5.35 percent recorded the previous month thanks to a rise in food inflation as the flood damaged crops, vegetables and fishes in the country.
It marks the first time inflation has been recorded at 6 percent or above this year.
“The inflation rate went up to 6.02 percent in June, which is 0.67 percent higher than that in May 2020,” said the Planning Minister at a virtual press briefing after the Ecnec meeting.
“It seems to us that the prices of food items increased as the sudden flood damaged many crops, vegetables and fishes… Besides, the prices of food goods usually go high during the rainy season as it damages roads. After the flood, the inflation will become normal again,” he said.
The annual average inflation rate was 5.65 percent in the 2019-20 fiscal year, said the Planning Minister.
According to the monthly consumer price index provided by Bangladesh Bureau of Statistics (BBS) for the media after the briefing, the food inflation rose to 6.54 percent in June from 5.09 percent in May, but the non-food inflation rate declined to 5.22 percent last month from 5.75 percent in May.
The BBS data shows that prices of rice, egg, broiler chicken, vegetables and spices rose in June 2020.
In the rural area, the general inflation rate slightly went up to 6.02 percent in the month from 5.65 percent in May.
The general inflation rate also increased to 6.03 percent in June from 4.81 percent in the previous month in the urban area.
The point-to-point national wage index was virtually unchanged at 5.9 percent in June against 5.89 percent in May 2020.