Dhaka experienced 11.08% annual average inflation in 2022: CAB

The average inflation rate in the capital was 11.08% higher last year compared to what it was in the first month of the year, according to a report published by the Consumers Association of Bangladesh (CAB).

"The rate was 9.13% higher in the case of low-income people," CAB wrote in the report titled "Inflation Pressure on Megacity Dhaka in 2022" published on Saturday.

The report on annual inflation illustrated its impact on general people, as well as, the impact on low-income people.

Dr Mahfuz Kabir, research director of the Bangladesh Institute of International and Strategic Studies (BIISS), disclosed the findings on last year‍‍`s cost of living at a press conference in the city today.

He said, "Inflation rate started to increase from February 2022 compared to January. After a brief decline in May, it picked up again from June."

The upward trend in energy prices has contributed to rising inflation, Dr Mahfuz Kabir observed.

"Fuel price hike resulted in the increase of production cost after it caused the commodity prices and transportation costs to go up," he explained.

"For irrigation, farmers had to pay more for diesel while the price of fertilizer was also high. All these led to a high production cost.

"On the other hand, volatility of the dollar market driven by the Russia-Ukraine war increased the prices of imported items," he added.

Apart from finished products, the cost of production of food and non-food items has increased due to increased import prices of various raw materials.

According to the CAB report, the overall food inflation rate during the period was 10.03% while it was 7.76% higher for the lower-income group. However, non-food inflation turned even costlier and surpassed this rate.

The overall inflation rate excluding food was 12.32%. Inflation was 10.41% higher for low-income people.

The survey report has been prepared on the basis of information collected from 11 markets across Dhaka north and south. The inflation rate was calibrated by monitoring 141 food items, 49 non-food items and 25 services.