General inflation, year-on-year, went up to 11.58% in November 2011 from 11.42% in November. Bangladesh Bureau of Statistics blamed recent fuel price hike for such upward movement of inflation.
While food inflation fell marginally to 12.47% in November from 12.82% in October, non-food inflation keeps rising and rose to 11.16% from 9.05%. Despite monetary tightening measures, the rising trend in non-food inflation remains a concern as it is considered as the second-round effect of food inflation, and usually, the effect of non-food inflation is permanent, say for example, wage rise.
One basic question: Is monetary policy ineffective? Or, it has a lag effect, rather an immediate effect?
Here are the news link:
1. Fuel spikes inflation
2. Point-to-point inflation rises to 11.58pc in Nov
3. Inflation edges up