Inflation edged up slightly in March owing to the rise in prices of non-food items although coronavirus-induced panic-buying before the country was placed on a lockdown made some food items expensive. General inflation rose by only two basis points to 5.48 per cent from 5.46 per cent last month, according to data released by the Bangladesh Bureau of Statistics (BBS) yesterday. Food inflation dropped 10 basis points to 4.87 per cent, while non-food inflation went up 22 basis points to 6.45 per cent. In rural areas, inflation was up three basis points to 5.47 per cent. Food inflation fell by three basis points to 5.06 per cent and non-food inflation edged to 6.27 per cent, up 15 basis points from February. In urban areas, food inflation fell from 4.7 per cent to 4.44 per cent and non-food inflation from 6.36 per cent to 6.69 percent in March, increasing the inflation by one basis point to 5.49 per cent, BBS data showed. Although food inflation declined across the country last month, the prices of some items rose in Dhaka city due to panic-buying before the lockdown began March 26. For example, the prices of two varieties of rice, potato, lentil, salt, garlic and ginger rose in March compared with February, BBS data showed. The price of onion fell from Tk 120 a kg to Tk 82 owing to a supply glut. The prices of wheat, fish, egg, brinjal and green papaya remained unchanged from February. The government has targeted a 5.5 per cent inflation rate this fiscal year. It was able to contain it at 5.48 per cent last fiscal year, which is comfortably below the target of 5.6 per cent. In a report in late February, before the first confirmed cases of COVID-19 in Bangladesh, the finance ministry said the crash in oil prices might help the country keep its current account deficit and inflation lower. For computation of the Consumer Price Index, two consumer baskets are used: urban basket and rural basket. In the urban consumer basket, 422 commodities are included and in the rural one 318 food and non-food items. The BBS collects price data from 140 main markets — 64 from urban, 64 from rural and 12 from Dhaka city corporations — across the country.
