Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
Table: Food expenditure as a
share of income (in per cent)
National Rural Urban
CPI Consumption Basket:
Does it Reflect Consumption Pattern?
Table: Food expenditure as a
share of consumption
expenditure (in per cent)
National Rural
Table: Weights used for food
in calculation of CPI
(base year 2005)
National Rural
Urban
Urban
2000 42
48
32
2000
55
59
45
2000
2005
45
50
36
2005
54
59
45
2005
56
61
47
2010 53
57
45
2010
55
59
48
2010
56
61
47
2016
46
52
37
2016
48
50
43
2016
56
61
47
□ Engel's law states that as income increases, people spend a smaller proportion of their
total income on food
In Bangladesh, nominal household income increased by 7.86% per year on average and real
household income increased by 0.16% per year on average between 2010 and 2016
food expenditure as a share of income decreased from 53% in 2010 to 46% in 2016
food expenditure as a share of total consumption expenditure decreased from 55% in 2010 to 48% in
2016
However, the weights used for food in the calculation of CPI are significantly higher than
share of food expenditure in either income or consumption expenditure
Thus, the consumption basket used for calculating overall general inflation
was created in 2005 and does not reflect the current consumption pattern of
consumers or the actual prices in the market in 2022
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
Source: BBS
33
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