July inflation hits 12-year high of 11.66%
Food inflation was also registered at a record high of 14.10% and non-food inflation at 9.68% in July
Bangladesh's general inflation last month, marked by quota reform movement leading to blockades and curfews, soared to a record high of 11.66%, according to Bangladesh Bureau of Statistics data released on Monday (12 August).
This is the first time the country's general inflation has reached double digits and is the highest in at least 12 years, based on available data from the Bureau's website.
General inflation in the previous month of June was 9.72%, while the previous highest was 9.94% last May.
Food inflation in July climbed to a record 14.10%, while non-food inflation reached 9.68%. In comparison, these figures stood at 10.42% and 9.15% respectively in June.
Keep updated, follow The Business Standard's Google news channel
Mohammed Mizanur Rahman, director general of the statistics bureau, told The Business Standard that nationwide unrest in July led to reduced product supply and higher food prices.
"However, non-food inflation did not increase as significantly," he added.
Experts also blamed the high inflation mostly on the unstable situation in the country in July. They suggested that the bureau might now be more transparent in publishing economic figures under the new interim government.
Zahid Hussain, former lead economist at the World Bank's Dhaka office, said a high inflation in July was expected due to supply disruptions.
He explained that the lack of market connectivity led to higher prices where shortages were severe. "Even in areas with surplus supplies, prices did not fall."
The economist said inflation may also be driven by uncertainty and hoarding, as people might buy more due to curfews and market disruptions.
He further said the Bangladesh Bureau of Statistics might now be more transparent in its reporting under the new interim government, offering "fearless disclosure".
"Previously, we never saw inflation exceed 10%. However, inflation felt like 20% in the markets," said Zahid Hussain.
July saw a number of days with curfew in place, disrupting supply chains and hampering smooth operations of people and businesses. Rail and port services were also suspended at this time.
Urban and rural inflation
According to the Bureau of Statistics, inflation was high in both rural and urban areas in July. Rural inflation was 11.89%, while urban inflation was 11.27%. In June, these rates were 9.81% and 9.58% respectively.
Food inflation also increased, with rural food prices rising by 14.06% and urban food prices by 14.22%. In June, food inflation was 10.39% in rural areas and 10.54% in urban areas.
Non-food inflation in rural areas was 9.84% in July, up from 9.26% in June, while in urban areas it was 9.43%, compared to 8.98% in June.
Besides, wage rates increased to 9.93% from January to July, up from 7.95% in June.
