Bangladesh ends FY26 with lower average inflation despite June staying above 9%

Economists attribute the recent inflationary pressure largely to higher fuel prices despite a modest monthly slowdown

Bangladesh's inflation has eased slightly in June from the previous month but remained above 9 percent, while the average inflation rate for the fiscal year declined to 8.68 percent.

According to latest data from the Bangladesh Bureau of Statistics (BBS), headline inflation stood at 9.16 percent in June, the final month of the 2025-26 fiscal year, down from 9.42 percent in May.

However, inflation has remained above the 9 percent mark for three consecutive months since April.

Economists said the recent increase in fuel prices had been the main driver behind the sustained inflationary pressure.

Inflation was 8.48 percent in June of the previous fiscal year.

On a point-to-point basis, inflation was 9.04 percent in April.

Data released by the BBS on Monday also showed average inflation for the 2025-26 fiscal year fell to 8.68 percent, compared with 10.03 percent in the 2024-25 fiscal year.

Food inflation rose year-on-year, climbing to 8.6 percent in June from 7.39 percent a year earlier. However, it eased from 9.06 percent recorded in May.

Non-food inflation also edged down month-on-month, falling to 9.61 percent in June from 9.71 percent in May.

Even so, it remained higher than the 9.37 percent recorded in June of the previous fiscal year, indicating higher costs across the sector over the past year.

The BBS said prices eased slightly in both urban and rural areas compared with the previous month.

Inflation in rural areas stood at 9.23 percent in June, while urban inflation was also 9.23 percent. In May, the rates were 9.25 percent and 9.48 percent, respectively.