July inflation snaps declining streak, rises to 8.55% in Bangladesh

Meanwhile, the central bank set a target of containing inflation within the 6.5% ceiling for FY26

Bangladesh’s inflation rate edged up to 8.55% in July, breaking a three-month easing streak, driven by simultaneous hikes in both food and non-food prices, according to data released by the Bangladesh Bureau of Statistics (BBS) today (7 August).

Before the latest uptick, inflation had steadily declined – from 9.35% in March to 9.17% in April, 9.05% in May, and 8.48% in June.

Food inflation rose to 7.56% from 7.39% in June – reversing a seven-month downtrend – while non-food inflation slightly up to 9.38% from 9.37%. Although food prices remain below the record 14.10% seen in July 2024, the reversal hints at renewed pressure on household budgets.

More worryingly, wage growth inched up only marginally to 8.19%, continuing a 42-month streak where wages have failed to keep up with inflation, deepening the cost-of-living crisis for low-income groups.

Meanwhile, the central bank set a target of containing inflation within the 6.5% ceiling for FY26.