Inflation rate on a point-to-point basis rose in March after a steady decline for three consecutive months, and the upward trend was more pronounced in the rural areas than in the urban ones.

In March, the overall inflation rate rose by 0.47 percentage point from the previous month. The rise in the rural areas was estimated at 0.59 percentage point and in the urban areas it was 0.14 percentage point.

According to an estimate of Trading Corporation of Bangladesh (TCB) yesterday, prices of all essentials rose

by 4 to 123 percent over the last one year while the rise was 3 to 40 percent in the last one month.

The relentless price spiral of essentials has made life miserable for the middle and low income group people. A mid level female officer of a private firm appeared furious at the way things are going. "Could you please give me the commerce minister's telephone number? I want to tell him about the situation and ask him what he is doing about it," she said in a telephone call to The Daily Star after returning from a market yesterday morning.

After a record inflation rate in

November last year, it continued to drop in the next three months.

Bangladesh Bureau of Statistics (BBS) data say 7.95 percent national inflation rate in November came down to 7.07 percent in December last year, 6.59 percent in January and 5.72 in February this year.

But the trend changed in March again when inflation rose to 6.19 percent.

In case of food items, inflation rate increased by 0.56 percentage point to stand at 6.08 percent in March from 5.53 percent in February.

Inflation rate rose by 0.28 percentage point in case of non-food items and stood at 6.56 percent in March while it was 6.28 percent in February.

Sources said the below-target production of Aman rice, devaluation of taka, decline in import of essentials and crises of petroleum products, power and fertiliser have resulted in the rise of inflation rate.

Besides, Bangladesh Bank sources said non-economic factors have also contributed to the upward trend of prices. Syndicated market control is one such factor which, various quarters alleged, the government failed to control.

Aman production this fiscal year was predicted to be 1.12 crore tonnes but sources said actual production was 1.08 crore tonnes. In the previous fiscal year, Aman production suffered due to devastating floods but still the output totalled 98 lakh tonnes. In FY 04, Aman output stood at 1.15 crore tonnes. It shows Aman production this year was less than what is normally produced.

During March-April, taka was devalued by about 5 to 6 percent against dollar from December. While this has had an impact on the prices of imported essentials, import of those and many other consumer goods also dropped during this period.

According to statistics of opening of letter of credit (LC), import of consumer goods declined by 35

percent during July-February period of this fiscal year from that during the corresponding period of last year. Import of rice and wheat declined by 52 percent.

Although the government did not raise prices of petroleum products recently, they were sold at much higher rates all over the country, resulting in rise of transportation cost and consequently prices of consumer goods.

Moreover, continued loadshedding of power and fertiliser crisis raised prices of both agricultural and industrial products.

According to the TCB which monitors price level in Dhaka market, price of coarse rice yesterday was 3 percent more than that on the corresponding day last year. The price rise of wheat was 8 percent, soyabean oil 4 percent, lentil 24 percent, potato 123 percent, garlic 97 percent and onion 60 percent over this period.

Besides, prices of other essentials including fish and meat have also risen by 10 to 13 percent.

In March, inflation rate in rural areas was 6.27 percent compared to 5.67 percent in February.

For food items, the rate was 5.72 percent in March and 5.00 percent in February and for non-food items, it was 7.20 percent in March and 6.86 percent in February.

In March, the inflation rate in urban areas was 5.94 percent against 5.80 percent in February.