Bangladesh鈥檚 general inflation slightly rose to 8.55 per cent in July 2025 from 8.48 per cent a month earlier, driven largely by higher food prices, according to the Bangladesh Bureau of Statistics (BBS).
Food inflation rose to 7.56 per cent in July, up from 7.39 per cent in June, reflecting continued strain on household spending.
Non-food inflation remained almost unchanged, rising marginally to 9.38 per cent from 9.37 per cent.
The uptick in inflation came after a brief respite in June, when the rate dropped to its lowest point in 35 months.
That decline had offered a temporary relief from persistent price pressures, but the July data indicates inflationary trends are still lingering.
Although July鈥檚 inflation is significantly lower than the recent peak of 11.66 per cent in July 2024.
Over the past three years, inflation has remained one of the toughest challenges for policymakers, particularly due to external supply shocks, taka depreciation, and increased import costs.
The average inflation for the 12 months from July 2024 to June 2025 stood at 10.03 per cent鈥� well above the central bank鈥檚 comfort level.
July 2022 had recorded a relatively lower inflation rate of 7.48 per cent, but the situation deteriorated thereafter.
Following the mass uprising and fall of the Awami League-led government in early August 2024, the interim government took office and declared inflation control a top priority.
The authorities responded with a mix of monetary and fiscal measures. Bangladesh Bank adopted a contractionary policy by raising interest rates to curb demand-side inflation, while the National Board of Revenue slashed import duties and taxes on essentials like edible oil, onions, potatoes, and eggs to soften food prices.
Finance adviser Salehuddin Ahmed in the budget projected an average 6.5 per cent inflation rate for FY 2025鈥�26, a target that analysts say is ambitious given the current inflation trajectory.
In July, inflation in urban areas rose to 8.95 per cent, while rural inflation stood slightly lower at 8.55 per cent.
Despite these figures, the wage index for the same month rose by 8.19 per cent, meaning real income growth continues to lag behind price hikes for most households.
A decline in the inflation rate doesn鈥檛 mean prices are falling. Instead, it means prices are still rising, just at a slower rate than before.
Bangladesh Bank governor Ahsan H Mansur in its latest monetary policy statement said that the central bank will only consider easing the tight money policy once inflation sustainably drops below 8 per cent. Until then, the current strategy of interest rate hikes and liquidity tightening will remain in place through December 2025.
