Inflation Rises Again in July

After four consecutive months of decline, the country’s overall inflation rate increased once more in July. According to data released on Thursday (7 August) by the Bangladesh Bureau of Statistics (BBS), the inflation rate for July rose slightly to 8.55%, up from 8.48% in June.

June marked the lowest inflation rate in 35 months, but this downward trend was reversed in July.

Breaking down the figures, food inflation in July stood at 7.56%, while non-food inflation was higher at 9.38%, both showing an increase from the previous month.

Inflation Trends and Economic Impact

Inflation has remained persistently high over the past three years. The average inflation for the fiscal year 2024-25 reached 10.03%.

Economists explain that inflation acts as an indirect tax. When income growth does not keep pace with rising market prices, ordinary households face increased financial pressure. Many people have to resort to borrowing or reduce their spending, effectively diminishing their real income.

It is important to note that a lower inflation rate does not imply that prices have decreased; rather, it indicates that the pace of price increases has slowed. For example, an item costing 100 Taka in 2024 would cost 108.55 Taka in July 2025.

Historical Context and Government Measures

In July 2024, food inflation peaked at 14.10%—the highest in 13 years. Since then, the interim government has implemented various measures to control inflation, yielding some positive effects.

Over the last two to three years, managing inflation has become one of the major economic challenges. Following the interim government’s rise to power, efforts to curb inflation included raising interest rates and reducing duties and taxes on essential commodities such as oil, potatoes, onions, and eggs by the National Board of Revenue (NBR). The government has also worked to maintain a steady flow of imports of essential goods.

Although inflation has yet to be fully controlled, experts believe it has recently stabilised somewhat at a manageable level. This trend offers cautious optimism for the economic outlook in the near future.

The government’s continued focus on controlling inflation remains critical for the financial wellbeing of ordinary citizens and the stability of the economy.