INFLATION

(20052006=100)
CPI/MONTH
General Index
Inflation(Mont
hly Basis)
Inflation( poin
t to point)

2012-2013

2013-2014

Jan
184.33
1.05

Feb
184.79
.25

Mar
185.01
.12

Jan
198.15
1.19

Feb
198.54
.20

Mar
198.84
0.15

6.62

7.84

7.71

7.50

7.44

7.48

MONTHLY GROWTH
1.5
1

1.19

MONTHLY GROWTH

0.5
0
JAN

8
7.5

0.2

0.15

FEB

MAR

7.84
7.5

7.44

7.71
7.48
2013

7
6.5

2014

6.62

6
JAN

FEB

MAR

Inflation refers to the sustained rise in the cost of living. It is influenced by interactions between
product market, factor market, money market, foreign exchange market etc.
From the above data it is seen that Inflation growth in January 2014 was 1.19 but then it
gradually dropped in February and March. In January usually there is a tendency among people
to spend a bit more as it is the starting of an year so price of food and non food items tend to rise
a bit higher than other month. There is no other particular reason to be a high growth rate in
January comparing to other two months.

If we compare point to point basis then it is seen that inflation rate is stable in the 3rd FY of 2014
compare to the 3rd FY of 2013. One reason can be said that overall economy was in a stable
situation during these three months of 2014 so as the same period of 2013. A stable inflation rate
is always good for the country. But if we compare the point to point data of 3rd quarter of FY
2014 to 3rd quarter of FY 2013, then we can see that January 2014 inflation growth is higher than
same period in 2013. In the year 2014 as the old government took power for new terms people
started to assume some stability in the country and begun to spend much. As demand for
commodity increased there was a upward pressure in the price for kinds of food and non food
items. That is why inflation growth rate was higher in the month of January compare to the same
time one year earlier. But compare to February and March 2013, this years February and March
inflation were lower as well as stable. That is because in that particular period in 2013 the overall
economic condition was volatile as political situation was coming under the shadow of
uncertainty. Supply of basic living commodities were getting hampered because of regular Hartal
also there was other political factors which caused inflation to be unstable.
http://www.bbs.gov.bd/PageWebMenuContent.aspx?MenuKey=294

Export
2012-2013(in
million $)
2554.28
2246.51
2303.42

JAN
FEB
MAR

2013-2014(in
million $)
2753.77
2389.42
2413.66

Changes(in
million $)
199.49
142.91
110.24

Growth Rate
7.81%
6.36%
4.78%

3000
2500
2000
2013

1500

2014

1000
500
0
JAN

FEB

MARCH

GROWTH RATE
10.00%
8.00%

GROWTH RATE

6.00%

GROWTH RATE

4.00%
2.00%
0.00%
JAN

FEB

MARCH

Export sector was positive in the economy despite the overall situation that
this sector is currently facing. This sector has shown continuous growth.
Compare to 3 quarter of FY 2013 the same period now is showing higher
export. This means our economy is doing better than previous. There are
several reasons behind higher export this years 3rd quarter. Like this year
there was no political instability in the country which brought trust among
foreign buyers and led to higher order of finished goods like clothing and
related accessories. Our export sector is highly dependent on garments
sector. So if the shipment of garments finished goods and related goods rise
export tends to rise. So as buyers placed more orders in the 3rd quarter of
2014 compared to the 3rd quarter of 2013 export sector has seen the this
growth. But if we look at the monthly consecutive data we can see that there
is a downward trend in export from January to March 2013. So this is a bad
news for the economy. There are few reasons behind this. One is that one of
our major buyers is USA. After the 5th January Election the relation between
USA and Bangladesh has become somewhat cooler than any previous time.
So there is a tension in the air in the mind of buyers as well as
manufacturers.