Inflation inches higher again
Staff Reporter:
Bangladesh’s inflation edged higher in November, despite a full year of aggressive monetary tightening, as point-to-point inflation rose to 8.29 percent amid renewed pressure from food prices and persistently elevated costs in both rural and urban areas.
Fresh CPI data released by the Bangladesh Bureau of Statistics (BBS) show that although inflation is significantly lower than a year earlier, the months-long downward momentum has stalled, reflecting deep-rooted structural constraints in the economy.
Wage growth has also failed to keep pace with rising prices. According to BBS figures, wages increased by 8.04 percent in November—still below inflation—further eroding household purchasing power compared to last year.
The latest data show inflation increased to 8.29 percent in November from 8.17 percent in October. While the rate remains well below the 11.38 percent recorded in November 2024, the renewed month-to-month uptick indicates lingering inflationary stress and highlights the challenge of anchoring price stability.
Despite this, Bangladesh Bank Governor Ahsan H Mansur expressed strong optimism on Thursday (4 December) that inflation can be brought below 5 percent by the end of the current fiscal year—a target he said is critical for easing lending rates.
Speaking at a programme hosted by the Bangladesh Investment Development Authority (Bida) in Dhaka, Mansur reiterated that stabilising inflation and restoring positive real interest rates remain the central bank’s highest priorities. These conditions, he stressed, are essential for reviving private-sector investment and maintaining macroeconomic stability.
In response to concerns from the business community over the high cost of borrowing, the governor said any reduction in interest rates depends entirely on the inflation trajectory.
“If inflation comes down to 5 percent within this fiscal year, we can begin reducing the interest rate,” Mansur explained. “But it cannot happen the other way around. High inflation with low interest rates is wishful thinking.”