Bangladesh's inflation jumps to 9.86% in January despite monetary tightening

Consumer prices in Bangladesh appeared to stabilise towards the end of 2023 but the trend did not continue into the new year.

Headline inflation rose to 9.86 percent in January, up by 1.29 percentage points year-on-year, according to the latest data published by the Bangladesh Bureau of Statistics (BBS).

After surging to 9.93 percent in October last year, inflation slowed to 9.49 percent and 9.41 percent in November and December.

Amid soaring prices, general inflation hit an 11-year high of 9.94 percent in May 2023, and continued to be a headache for policymakers. The central bank has since adopted various measures to tighten the supply of money in a bid to reign in inflation.

In January, urban areas were hit hardest by rising prices as the general inflation rate reached 9.99 percent. Urban food inflation stood at 9.98 percent, with non-food inflation at 9.43 percent.

Meanwhile, rural inflation was slightly lower at 9.70 percent. The food sector saw a 9.41 percent increase, and the non-food sector increased by 9.19 percent in such areas.

A BBS official noted that January's prices for winter vegetables and rice were higher than the previous year. He highlighted a marked increase in the prices of vegetables, including onions and garlic, compared to the same month last year.