Inflation eased to a three-year low of 8.29% in August, driven mainly by a sharp fall in non-food prices, according to the Consumer Price Index (CPI) report released by the Bangladesh Bureau of Statistics (BBS) on Sunday.
The figure marks a decline from 8.55% recorded in July, although food inflation edged up slightly to 7.60% in August from 7.56% in the previous month.
Put simply, the 8.29% inflation rate means a basket of goods and services that cost Tk100 in August 2024, required Tk108.29 in August 2025.
Non-food inflation showed a significant fall, dropping below 8.9% from 9.38% a month earlier. This was the key driver behind the overall decline, offsetting the modest rise in food prices.
Inflation has been on a downward trajectory in recent months. In June 2025, it fell to 8.48%— the lowest in 27 months—down from 9.05% in May. However, the upward blip in July underscored continued volatility.
Food inflation has seen sharper swings. It dropped to 7.39% in June from 8.59% in May, offering some relief to households.
Economists attributed the recent easing trend to a mix of policy measures taken by the government and the central bank, including tighter money supply management, reduced import duties on essential commodities, and intensified market monitoring.
Still, they warned that external factors—particularly global economic uncertainty and continued dollar appreciation—pose risks to sustaining the downward trend.
FP/MI