The information came in the Bangladesh Bureau of Statistics (BBS) Consumer Price Index (CPI) report for October. In October last year, inflation in the country was 8.17 percent — so, year-on-year, inflation is still slightly higher.
According to BBS data, food inflation fell to 6.40 percent in October, from 7.22 percent in September. Non-food inflation, however, rose to 9.89 percent, from 9.30 percent in September — so spending on goods and services other than food increased.
Food inflation fell in both rural and urban areas, while non-food inflation rose in both. Overall inflation in rural areas was 8.29 percent in October (8.38 percent in September); rural food inflation was 6.37 percent (previously 7.18), and rural non-food inflation rose to 10.21 percent (previously 9.57). In urban areas, overall inflation was 8.25 percent in October (8.26 percent in September); urban food inflation was 6.42 percent (previously 7.25), and urban non-food inflation rose to 9.48 percent (previously 8.94).
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Average inflation over the longer term also fell. According to BBS, the 12-month average inflation from November last year to October this year stood at 8.66 percent, compared with 9.22 percent in the previous 12 months.
However, people's incomes are growing more slowly than inflation. The wage growth rate stood at 7.63 percent in October, down from 7.90 percent in September. In October last year, wage growth was 8.01 percent — so the pace of wage growth has also slowed. Wage growth fell in all three sectors — agriculture, industry and services: agriculture 7.55 percent (7.89 in September), industry 7.62 percent (previously 7.86), and services 7.96 percent (previously 8.07).
In other words, inflation was 8.27 percent in October while wages rose by 7.63 percent — wage growth was 0.64 percentage points lower than inflation. As prices of goods and services rise faster than incomes, ordinary people remain under pressure to meet the extra costs.