Economy
5 days ago

Inflation eases in June, but concerns remain over rising rice prices

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The country’s headline inflation rate eased to 8.48 per cent in June, down from 9.05 per cent recorded in May, driven by declining prices in both food and non-food categories, according to the latest data from the Bangladesh Bureau of Statistics (BBS).

Food inflation fell significantly to 7.39 per cent in June last, marking a drop of 1.2 percentage points from the previous month of May.

Non-food inflation also edged down to 9.37 per cent in June from 9.42 per cent in May 2025.

Economists attributed the decline in food inflation to the falling prices of key items such as potatoes, onions, and eggs.

However, they cautioned that the relief might be temporary, as rice prices—the most determining item in the consumer food basket—have started to climb in many regions over recent weeks.

“Yes, we are seeing some relief in the prices of food items, but there is uncertainty about whether it will sustain,” said a Dhaka-based economist.

“Rice prices, especially for coarse varieties, are rising in several districts, and that poses a risk of food inflation rebounding.”

He also said that rice carries the highest weight in the food component of the Consumer Price Index (CPI).

“If the government fails to contain the price of this staple, overall inflation could again trend upward,” he added.

Despite the latest easing, Bangladesh’s inflation remains stubbornly high and well above the government’s target for the fiscal year, challenging both monetary and fiscal policymakers ahead of the upcoming national budget.

jasimharoon@yahoo.com

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