After several months of high inflation, price pressure in Bangladesh continues to ease. According to the latest figures from the Bangladesh Bureau of Statistics (BBS), overall inflation fell for the third consecutive month to 8.26 percent in August, the lowest rate in ten months. Food inflation dropped into the 7 percent range in the same month, raising hopes of less pressure in the market for daily essentials.

Overall inflation was 8.32 percent in July, so the August figure is 0.06 percentage points lower. It stood at 9.16 percent in June and 9.42 percent in May. From the May peak, inflation has therefore fallen by 1.16 percentage points in three months.

The series ran at 8.29 percent in November 2025, 8.49 percent in December, 8.58 percent in January, 9.13 percent in February, 8.71 percent in March, 9.04 percent in April and 9.42 percent in May, before declining in June, July and August.

A slower rise in food prices has played a large part. Food inflation fell to 7.02 percent in August from 7.16 percent in July; in August last year it was 7.60 percent, so the rate is down for a second month and below the same month of the previous year. Rural overall inflation eased from 8.36 percent in July to 8.31 percent in August, and urban inflation from 8.24 to 8.20 percent.

Alongside better supply conditions, the report credits government policy. The budget for the 2026-27 financial year cut source tax on 60 essential goods; the food-friendly programme and open market sales (OMS) for low-income people have been expanded; the Trading Corporation of Bangladesh (TCB) is being strengthened and is launching a scheme to sell some cheaply imported essentials without subsidy. If supply stays normal, the report says, the downward trend could gain strength.

The government has set a target of bringing inflation down to 7.5 percent in 2026-27, and the August figure is a sign of progress toward it. Falling inflation, however, does not mean falling prices; it means prices are rising more slowly than before. For farmers and consumers alike, holding the downward trend in both food and non-food prices is now what matters.

Based on a BSS report carried by Samakal.

Source: Samakal