Inflation rises in Dec amid essentials price hiking

Muhammad Ayub Ali :

Inflation in Bangladesh rose to 8.49 percent in December 2025, up from 8.29 percent in November, according to the latest data from the Bangladesh Bureau of Statistics (BBS).

Although the rate remains significantly lower than the 10.89 percent recorded in December 2024, price pressures continue to weigh on households.

BBS data released on Monday show that both food and non-food inflation increased in December.
Food inflation rose to 7.71 percent from 7.36 percent a month earlier, signalling renewed pressure on household budgets as prices of essential items edged up.

Non-food inflation also increased, climbing to 9.13 percent from 9.08 percent in November 2025.
In comparison, food and non-food inflation rates stood much higher in December 2024, at 12.92 percent and 9.26 percent respectively.

Economist Moinul Hossain described the current level of inflation as unacceptable and called for urgent government action to rein in prices.

He said rising costs are eroding living standards, particularly for low- and middle-income groups.
Stressing the government’s commitment to bring inflation below 7 percent, he said the target must be achieved through effective and coordinated policies to protect purchasing power and ensure sustainable economic growth.
Analysts attribute recent fluctuations in inflation to supply-side constraints, higher fuel and transportation costs, and movements in the dollar exchange rate.

While inflation has eased compared to last year, they argue that stronger market management and better policy coordination are essential to keep prices under consistent control.

How inflation affects households
Inflation effectively acts like an indirect tax on households. When prices rise but incomes remain unchanged, families are forced to cut back on spending or borrow to meet daily expenses. Essential areas such as food, clothing, healthcare, and transportation are often the first to be affected.

If wage growth lags behind inflation, real income declines and financial hardship increases.
According to BBS, the national wage growth rate stood at 8.08 percent in December, lower than the inflation rate of 8.49 percent. This gap means that, on average, workers’ purchasing power continued to weaken.

A lower inflation rate does not necessarily mean prices are falling; rather, it indicates that prices are rising at a slower pace.

For example, goods and services that cost Tk 100 in December 2024 would cost Tk 108.49 in December 2025.
In practical terms, a family that spent Tk 1 lakh a year ago would need an additional Tk 8,490 this year to maintain the same standard of living. The burden, however, is heavier for low-income households.

Controlling inflation has remained one of the economy’s biggest challenges over the past two to three years.
After the interim government took office, measures were introduced to curb inflation, including raising interest rates and reducing customs duties and taxes on essential commodities such as edible oil, potatoes, onions, and eggs.

Authorities also sought to ensure a steady supply of daily necessities through imports to stabilise market prices.