Energy price hike pushes up inflation
Consumers in Bangladesh were squeezed further in November as inflation kept rising, driven mainly by non-food inflation as the impacts of last month's hike of diesel and kerosene prices are taking a hold.
The Consumer Prices Index (CPI) rose 28 basis points to a 13-month high of 5.98 per cent from October's 5.7 per cent. This was up for the fourth consecutive month, according to the Bangladesh Bureau of Statistics.
Non-food inflation, which surged 39 basis points to rocket to a 63-month high, was the driving force for the rising general inflation.
The non-food inflation surged to 6.87 per cent last month from 6.48 per cent a month ago, the highest since August 2016, Bangladesh Bank data showed.
With a view to arresting the losses of state-run Bangladesh Petroleum Corporation from the surging global energy prices, the government in the first week of November increased the price of diesel and kerosene by 23 per cent, the biggest jump in a decade.
The move prompted the public transport operators to call a countrywide strike, inflicting immense sufferings onto the common people and bringing the movement of goods to a standstill.
Three days later, the government hiked the bus fare by as much as 28 per cent and launch fares by up to 43 per cent in order to appease the operators.
Food inflation in Bangladesh is also at a higher level for the elevated commodity prices at home and abroad. It was up 21 basis points at 5.43 per cent in November, the highest in five months.
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