Inflation jumped by 64.21 per cent during the last 10 years mainly due to increase in cost of food items and record surge in global fuel prices, according to Bangladesh Bank annual report. The rate was higher in rural areas where price levels went up by 65.37 per cent against 61.39 per cent rise in urban areas between 1996 and 2006.

Food price inflation was 70.35 per cent but the non-food inflation was 56.56 per cent during the 10-year period. Food price inflation was 68.37 per cent in rural areas and 74.18 per cent in urban areas. Price of items other than food surged 59.59 per cent in villages and 49.20 per cent in towns.

The government’s upward adjustment of energy prices, mainly kerosene and diesel, resulted in higher transport cost, contributed to the price hike of commodities. Growth of domestic credit to the private and public sectors, increases in international prices of consumer goods, and depreciation of taka also fuelled the price hike.

The trend may be attributed to supply shock for food items stemmed from disruption in domestic supply channel, increased transport costs and high prices of imported foods. Independent economists, however, blamed non-economic factors, including extortion, corruption and business syndication, for unabated price hike of commodities in the domestic market.