The overall inflation jumped to 11.66 per cent amid the food price spiral in July, which saw massive student-led demonstrations leading to the ouster of prime minister Sheikh Hasina on August 5.
The inflation in July was higher than the average 10.9 per cent inflation calculated by the Bangladesh Bureau of Statistics 12 years ago in 2010鈥�11, but lower than the average 12.30 per cent in 2007鈥�08.
The sharp rise in inflation has mainly been attributed to food price hike led inflation, which was recorded at 14.10 per cent, almost close to the average 14.11 per cent inflation in 2001鈥�11.
Former World Bank Dhaka office chief economist Zahid Hussain blamed the high food inflation for the breakdown in the supply chain network because of the curfew imposed by the immediate past political regime to tackle the violent demonstrations throughout the country.
The consumers were responding to precautionary demand amid uncertainty in the availability of food items, he said.
The high demand and supply shortage caused a聽 price spiral for essential food items such as rice, onions, green chilli, and meat.
Traders said that the price of the coarse variety of rice increased by Tk 2-4 a kilogram and the item sold for Tk 52鈥�56 a kilogram during the last week of July.
The prices of locally grown onion reached Tk 115鈥�120 a kilogram while the imported variety sold for Tk 120鈥�130 a kilogram.
Zahid Hussain also noted that fearless disclosure by BBS officials could be another reason for the sudden rise in the rate of inflation by around 3.66 percentage points between July and June.
He explained that BBS officials used to seek approval from the planning commission for making the monthly inflation update.
But the BBS made the inflation update for July as per rules following the announcement on August 10 by new finance and planning adviser Salehuddin Ahmed that officials concerned should perform duties as per rules and regulations.
BBS has been criticised by economists for the lack of authentic data.
On May 9, Bangladesh Institute of Development Studies director general Binayak Sen said at a programme that food inflation in May reached 15 per cent, but the BBS calculated it at 10.76 per cent.
The monthly inflation in July also indicated double-digit food inflation for four months in a row.
BBS recorded food inflation higher in urban areas than rural areas for the past month.
The overall non-food inflation was recorded at 9.68 per cent since the demand for non-food items dropped because of the unrest, according to BBS.
The new interim government has to do a lot of things to check inflation, said Policy Research Institute executive director Ahsan H Mansur.
The measures included tightening monetary policy, increasing the supply of essentials, and strengthening market monitoring, he said.