Bangladesh inflation falls to 10-month low of 8.26 percent.
The country's overall inflation continued its downward trend for the third consecutive month, falling to 8.26 percent in August, the lowest level in the last 10 months, indicating easing price pressures in the economy.
According to the latest data from the Bangladesh Bureau of Statistics (BBS), inflation stood at 8.32 percent in July, meaning it declined by 0.06 percentage point month-on-month. It was 9.16 percent in June and 9.42 percent in May.
Thus, inflation has declined by 1.16 percentage points over the three months since reaching a peak of 9.42 percent in May.
The latest figures show that inflation was 8.29 percent in November 2025 before rising to 8.49 percent in December and 8.58 percent in January 2026. It further increased to 9.13 percent in February, fell to 8.71 percent in March, and then rose again to 9.04 percent in April and 9.42 percent in May.
The rate subsequently declined to 9.16 percent in June, 8.32 percent in July and 8.26 percent in August.
Food inflation also declined in August, falling to 7.02 percent from 7.16 percent in July. It was 7.60 percent in August last year. The latest figure marks the second consecutive monthly decline in food inflation and is also lower than the rate recorded a year earlier.
Inflation declined in both rural and urban areas in August. In rural areas, overall inflation fell to 8.31 percent from 8.36 percent in July, while in urban areas it declined to 8.20 percent from 8.24 percent.
Improved supply of commodities in the market, along with various government policy measures, has contributed to easing price pressures.
In the FY2026-27 budget, the government reduced source tax on 60 essential commodities. It has also expanded the Food-Friendly Programme and Open Market Sale (OMS) activities for low-income people.
The Trading Corporation of Bangladesh (TCB) is also strengthening its operations to help keep the supply and prices of essential commodities stable.
The state-run agency is taking a new initiative to sell some imported essential commodities at comparatively lower prices without subsidy, according to the relevant authorities.
The government has set a target of bringing inflation down to 7.5 percent in FY2026-27. The decline to 8.26 percent in August indicates progress towards that target.
A decline in the inflation rate means that the pace of price increases has slowed compared with the previous period, rather than that commodity prices themselves have fallen.
Maintaining the recent downward trend and reducing price pressures in both food and non-food sectors will therefore remain important for further easing the cost-of-living burden on consumers.
The continued decline in inflation over the past three months, with the rate reaching a 10-month low in August, is an indication of easing price pressures in the economy, particularly as food inflation has returned to the 7-percent range.
