August inflation eases to 8.29pc

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 per cent in August, compared with 10.49 per cent in the same month last year.

In July, inflation had been 8.55 per cent.

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

A point-to-point rate of 8.29 per cent 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 per cent amid the political turmoil that brought down the Awami League government. In the months following the July Uprising, inflation hovered between 9-10 per cent.

Earlier this year, inflation fell to 9.05 per cent in May, and then to 8.48 per cent 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 per cent from 7.56 per cent in July.

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

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

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