Bangladesh maintained a moderate inflation rate during last few years despite rise in prices of various commodities in the international market.

The inflation rate in Bangladesh is the second lowest among the four major South Asian countries, 6.7 percent in the third quarter of last fiscal (2004-05), which is below the inflation in Pakistan and Sri Lanka.

According to a recent study of the International Monetary Fund (IMF), the inflation in Bangladesh has been well below than other Asian countries and its price volatility is less than other countries in the region.

The inflation during fiscal 20042005 was 10.3 percent in Pakistan while it was 11.1 percent in Sri Lanka. The rate, however, in India was 4.2 percent, according to the Bangladesh Bureau of Statistic (BBS).

During the three quarters of the last fiscal, the inflation rate in Bangladesh ranged between 5.5 and 7.4 percent while it ranged between 3.8 and 4.2 percent in India, 7.3 and 10.3 percent in Pakistan, following Sri Lanka with the inflation rate between 11.1 and 13.8 percent.

The country maintained an inflation between 5.6 and 6.5 percent during FY2003-04, while it was between 2.9 and 3.7 percent in India, 2.2 and 8.5 percent in Pakistan and between 2.5 and 6.7 percent in Sri Lanka.

The international market, however, is showing a steady rise in the prices of commodities over a period of more than four years.

The prices of rice in Thailand went higher by 8.86 percent during the third quarter of last fiscal, rising to $299.7 per tonne, from $275.3 in the corresponding period of the previous fiscal, data from International Financial Statistics shows.

The prices of sugar in the international market rose by 52.5 percent in February this year to 9.3 cents per pound from 6.1 cents in the corresponding period of the previous fiscal year.

The prices of petroleum in the global market rose by 389 percent in February this year amounting to $44.6 per barrel from $6.1.

The prices of soyabean oil, however, marked a fall by 34.3 percent in this February and came down to $443.3 per tonne from $675.2 in the same month of 2004.