Food costs drove May inflation higher; fuel price adjustment to push more in June, experts warn
1 hour(s) ago
Ahsan Habib
Bangladesh’s overall inflation climbed to a 16-month high of 9.42 percent in May, driven largely by a sharp rise in food prices that is squeezing household budgets, particularly for low- and middle-income families.According to data released by the Bangladesh Bureau of Statistics (BBS), food inflation rose to 9.06 percent in May from 8.39 percent in April, reflecting higher prices of essential commodities. Non-food inflation also increased, reaching 9.71 percent from 9.57 percent in April.Rural areas bore the brunt of the rise, with inflation climbing to 9.48 percent from 9.05 percent the previous month. Urban inflation rose from 9.02 percent to 9.25 percent.A BBS official, speaking on condition of anonymity, said the increase was spread across a range of commodities rather than concentrated in any single category of items.“It increased in some places and decreased in others. For example, summer vegetable prices have been easing, but year-round and winter vegetables such as tomatoes and carrots are rising again. Egg prices have also gone up,” the official noted.They added that the full effect of the recent fuel price adjustment had not yet been captured in the May figures, and that a further spike in inflation next month was likely as a result.Analysts and policy researchers agree that the current trajectory is cause for concern, and that the risks ahead may be greater than the May figures alone suggest.