Bangladesh’s inflation rate inched up in September, reaching 8.36%, reversing the modest decline recorded in August (8.29%). This rise comes despite months of tight monetary policy and various government interventions aimed at stabilising prices.
According to the latest Consumer Price Index (CPI) data released Monday by the Bangladesh Bureau of Statistics (BBS), both food and non-food prices contributed to the increase — a worrying sign for policymakers struggling to bring inflation under control.
In September, food inflation rose to 7.64%, up from 7.60% in August. Non-food inflation also increased, reaching 8.98%, compared to 8.90% the previous month — indicating persistent price pressures across sectors such as transport, education, and housing.
The government had targeted 6.5% inflation in the fiscal 2025-26 national budget. To meet this goal, the Bangladesh Bank has pursued a contractionary monetary policy, raising policy interest rates and tightening credit growth. However, the September figure suggests that achieving the target will be challenging.
Inflation is also having a disproportionate impact on rural households, where the rate rose to 8.47%, compared to 8.28% in urban areas. Experts attribute this to higher transportation and logistics costs, reduced market access, and increased vulnerability to food price volatility.
The Asian Development Bank (ADB) forecasts Bangladesh’s inflation to decline to 8% by the end of FY26, assuming energy prices remain stable and supply chains improve. However, ADB cautions that this would still make Bangladesh the most inflation-affected country in South Asia.
“Bangladesh must balance inflation management with inclusive growth policies,” said the ADB in its latest outlook. “Subsidies, wage adjustments, and safety nets must keep pace with rising cost-of-living realities.”
Inflation, economists warn, acts like an invisible tax, particularly for low- and middle-income families. According to BBS data, an item costing Tk100 in September 2024 would now cost Tk108.36 — a steep rise for households whose incomes have remained largely stagnant.
