Bangladesh inflation eases to 8.29% in August, lowest in over three years

While the headline rate dropped last month, food inflation rose slightly

Bangladesh’s headline inflation has dropped to its lowest level in over three years in August after a brief upturn the previous month.

Data released by the Bangladesh Bureau of Statistics (BBS) on Sunday showed that point-to-point inflation stood at 8.29 percent in August, compared with 10.49 percent in the same month last year.

In July, inflation had been 8.55 percent.

The August figure is the lowest in 37 months. Inflation was last lower in July 2022, when it stood at 7.48 percent.

A point-to-point rate of 8.29 percent means that an item or service costing Tk 100 in August 2023 cost Tk 108.29 in August 2024.

In July last year, overall inflation spiked to 11.66 percent amid the political turmoil that brought down the Awami League government. In the months following the July Uprising, inflation hovered between 9-10 percent.

Earlier this year, inflation fell to 9.05 percent in May, and then to 8.48 percent in June, before rising again in July.

Although the rate in August showed a small decline, it still remains well above the government’s target.

In the budget for fiscal year 2025-26, the government set a goal of holding inflation at 6.5 percent. The central bank has kept policy interest rates high in an effort to keep prices in check.

The latest BBS data revealed that while overall inflation eased in August, food inflation rose slightly, reaching 7.60 percent from 7.56 percent in July.

By contrast, non-food inflation fell, dropping from 9.38 percent in July to 8.90 percent in August.

In rural areas, overall inflation decreased to 8.39 percent in August, down from 8.55 percent in July.

Urban areas saw a sharper decline, with inflation falling to 8.24 percent in August from 8.95 percent in July.