Fuel price shock sends inflation higher again in September

The inflation rate has edged up in September after a fuel price hike fuelled higher food prices, reversing a two-month decline.

Point-to-point inflation stood at 8.34 percent in the third month of fiscal 2026-27, according to updated data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday.

Inflation had fallen to 8.32 percent in July, the lowest in eight months, before easing further to 8.26 percent in August.

Zahid Hussain, former lead economist at the World Bank’s Dhaka office, attributed the renewed rise to the “shock of higher fuel prices”.

The government raised the prices of four types of fuel by Tk 20 a litre on the night of Sept 20, pushing up transport and food costs, he told bdnews24.com.

“The impact of the fuel price hike was reflected in commodity prices during those 10 days of the month. Its impact will continue in the coming days. So I do not think inflation will fall over the next one or two months.”