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The general inflation eased further and dropped from the 9 per cent mark to 8.48 per cent in June because of falling prices of food items.

The rate of inflation in the past month is also the lowest in 35 months, according to the monthly update released by the Bangladesh Bureau of Statistics on Monday.


The bureau recorded the previous lowest rate of inflation at 7.48 per cent in July 2022.

Since then, the price hike of essentials had been maintaining an upward movement and reached the decade high of 11.66 per cent in July 2024.

The present government assumed power on August 8, 2024, three days after the ouster of the Awami League regime amid a mass uprising.

In May, the overall inflation was 9.05, the lowest in 27 months.   

The BBS latest update showed that the overall food inflation rate dropped to 7.39 per cent in June from 8.59 per cent in May.

The non-food inflation was easing slowly and was at 9.37 per cent in June, compared to 9.42 per cent in May.

The overall inflation in urban areas was slightly higher at 8.94 per cent than 8.86 per cent in rural areas in the past month.

The BBS update showed the falling monthly inflation recorded in June was still lower than the wage rate hike of 8.18 per cent.

Besides, the average inflation over the past 12 months between July 2024 and June 2025 was 10.03 per cent.

Finance adviser Salehuddin Ahmed, while announcing the first budget of the interim government on June 2, projected an average 6.5 per cent inflation at the end of the current financial year 2025-26 that will conclude in June 2026.

The target is higher than the projection from the International Monetary Fund at 5.2 per cent in FY 26.

Bangladesh Bank which has tightened money supply under the present government to contain inflation is expected to follow the same contractionary monetary policy over the next six months.

BB governor Ahsan Habib Mansur has already said that they would loosen money tightening when the inflation rate falls below the 8 per cent mark.