Inflation jumps to 8.55% in July

Inflation Edges Up to 8.55% in July Amid Rising Food Prices

Bangladesh’s headline inflation rose slightly to 8.55% in July, up from 8.48% in June, according to the latest data from the Bangladesh Bureau of Statistics (BBS).

The BBS report, titled “Consumer Price Index (CPI), Inflation Rate and Wage Rate Index (WRI) in Bangladesh,” released on Thursday, attributes the modest increase largely to a spike in food inflation.

Food prices saw a notable jump, with food inflation rising to 7.56% in July from 7.39% the previous month — a 0.17 percentage point increase that was the primary driver behind the overall uptick.

In contrast, non-food inflation held steady, rising only marginally to 9.38% from 9.37% in June.

The data shows that inflation had been on a declining trajectory since hitting 9.35% in May. However, the July reversal — fuelled by an abnormal surge in food prices — ended a two-month easing trend.

The General Economics Division (GED) of the Planning Commission had earlier warned about a sharp rise in food prices, particularly rice and fish. In a report published last month, the GED noted that these two items alone contributed over 83% to food inflation.

Meanwhile, wage growth edged up slightly to 8.19% in July, but it has remained consistently below the inflation rate for the past 42 months, exacerbating the cost-of-living pressures for many households.

In its latest monetary policy statement, Bangladesh Bank reiterated its goal of bringing inflation down to 6.5% within the current fiscal year.