DHAKA Feb 7 Bangladesh's annual inflation rate
picked up again in January, fired up by food prices, the
planning minister said on Tuesday, snapping a brief fall over
the previous two months.
Consumer prices in January rose 5.15 percent from a year
earlier, accelerating from a rise of 5.03 percent the previous
month when it eased to its lowest since July 2012, the minister,
Mustafa Kamal, said.
Annual food inflation in January quickened to 6.53 percent
from 5.38 percent the previous month, while non-food inflation
dropped to 3.10 percent from 4.49 percent.
A spike in prices of the staple rice led to the surge in
food inflation, the minister told a news conference.
Average inflation was 5.92 percent in the previous financial
year that ended in June 2016, the lowest in 12 years, largely
due to a sharp drop in global commodity prices and good
agricultural output in the South Asian country of 160 million
The government aims to hold inflation at 5.80 percent this
Last month, the central bank kept its key policy interest
rates unchanged, citing overall macroeconomic stability and a
steady inflation outlook.
In January 2016, the central bank cut its key interest rate
by half a percentage point for the first time in nearly three
years as easing inflation gave it room to help spur economic
(Reporting by Ruma Paul; Editing by Robert Birsel)