Staff Reporter :
Food inflation in Bangladesh remains stubbornly high, exceeding 10 percent for the second consecutive month.
In June, the food inflation rate stood at 10.42 percent, slightly down from 10.76 percent in May, significantly impacting those with limited incomes.
According to data released on Monday by the Bangladesh Bureau of Statistics (BBS), the overall inflation rate has stayed above nine percent for the 16th consecutive month.
However, it slightly decreased in June to 9.72 percent, marking a drop of 0.17 percentage points from the previous month. Non-food inflation in June slipped by four basis points to 9.15 percent from 9.19 percent in May.
In May, the country’s inflation rate had peaked at 9.89 percent, driven primarily by increased food prices. An inflation rate of 9.72 percent means consumers now spend Tk 109.72 on goods and services that cost Tk 100 in June of the previous year, reflecting a heightened cost of living. This rise disproportionately affects low and fixed-income individuals, who struggle the most to manage household expenses amid rising prices.
Bangladesh has faced persistent high inflation for the past two years, consistently hovering above nine percent. Despite various government measures aimed at curbing inflation, these efforts have yet to yield significant results.
The country experienced significant inflation throughout the financial year 2023-24, with the inflation rate rising to 9.73 percent against the government’s revised target of 7.5 percent.
This was the highest annual average inflation rate in 13 years, according to the BBS. The average inflation rate for the 2022-23 fiscal year stood at 9.2 percent. Economists highlight that high inflation remains one of the most pressing challenges for the country’s economy.
Ahsan H Mansur, an economist and executive director of the Policy Research Institute, stated, “Inflation acts like a tax, affecting everyone, rich and poor alike.
Higher inflation means that poor and middle-class families struggle to increase their incomes sufficiently to support their households. Over the past two years of high inflation, people’s purchasing power has significantly decreased, affecting all aspects of their lives.”