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Food inflation balloons on Ramadan, Eid

Star Business Report
After a 12-month respite of declining food inflation, it went back up in August partly due to a rise in prices of essential commodities during Ramadan and Eid festival.
Food inflation increased 0.80 percentage points to 7.1 percent last month, Bangladesh Bureau of Statistics said in a statement yesterday.
The rise is higher in rural areas than in urban areas. Food inflation rose 0.89 percentage points in rural areas and 0.58 percentage points in urban areas.
In September last year, food inflation reached nearly 14 percent but kept falling from then on until July this year.
However, overall inflation declined 0.10 percentage points to 7.93 percent in
August, according to data from the statistical agency.
Golam Mostafa Kamal, director general of BBS, the rise in prices of rice, lentils, fish, egg, vegetables, edible oil, milk and fruits contributed to the trend reversal in food inflation.
The overall inflation has been at tolerable level despite the rise in food inflation, he said.
Inflation has been under control thanks to a series of government steps, Kamal said, without elaboration.
A central bank official said the price of imported food items went up in the month of Ramadan and it served as the main factor behind the increase in food prices.
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He said the same factor also contributed to the rise in food inflation in rural areas compared to urban areas.
Non-food inflation however went down by 1.95 percentage points to 9.59 percent.
Last month, the government reset the base year for calculating inflation rates at 2005-2006 from 1995-1996 now — to introduce a more representative index of wholesale prices in the changing structure of the economy.
Under the new base year, overall inflation was 4.97 percent in August, which was 5.21 percent in July.
Food inflation went up to 2.25 percent last month from 2.23 percent in July whereas non-food inflation went down to 9.29 percent in August from 9.94