Estimating Inflation Rates of Import-Concentrated Commodities

This note provides estimates of inflation rate of import-concentrated commodities and their contribution to overall inflation in Bangladesh. The results suggest that the Bangladesh economy has been experiencing higher inflation of import-concentrated commodities especially of food items indicating the dominance of higher food prices in the international market in raising recent inflation in Bangladesh. The contribution of inflation of import-concentrated food commodities has also been large as estimates of pass-through of import-concentrated inflation rates to overall inflation exceed unity. The results highlight the importance of anti inflation measures using both fiscal and monetary policies that ensure long-run food security and thereby reduce reliance on food imports.