Inflation accelerates on food costs
Bangladesh’s inflation rate increased in May, driven by higher prices across both food and non-food categories, adding to the cost-of-living pressures facing households.
Data released by the Bangladesh Bureau of Statistics (BBS) on Saturday showed that point-to-point inflation rose to 9.42 per cent in May from 9.04 per cent in April. The latest figure was also slightly higher than the 9.05 per cent recorded in May last year.
The rise suggests that inflationary pressures have become more broad-based, with consumers facing higher costs for essential food items as well as a range of goods and services.
Food inflation rose sharply during the month, reaching 9.06 per cent in May compared with 8.39 per cent in April. The figure also exceeded the 8.59 per cent recorded in the corresponding month of last year, indicating continued pressure on household food expenditure.
Non-food inflation also remained elevated, increasing to 9.71 per cent in May from 9.57 per cent in April.
The rate was higher than the 9.42 per cent recorded in May 2025, reflecting persistent price pressures across sectors including transport, housing and services.
Economists said a combination of supply-side disruptions and stronger consumer demand has contributed to the latest increase in inflation.
Mustafa K Mujeri, Executive Director of the Institute for Inclusive Finance and Development (InM), said recent adjustments to fuel and electricity prices have had a widespread impact on production and distribution costs.
According to him, higher fuel prices have increased transportation costs, raising the expense of moving goods from producers to markets and ultimately pushing up consumer prices.
“The impact is being felt throughout the supply chain, from production to distribution, contributing to higher prices for food products and other daily necessities,” he said.
Mujeri also noted that recent flooding had affected agricultural production, particularly vegetables and paddy, disrupting supplies and placing additional upward pressure on market prices.
At the same time, seasonal demand associated with Eid celebrations has supported stronger consumer spending. Increased remittance inflows, festival bonuses and additional household income have boosted purchasing power, while supply has struggled to keep pace with demand.
He said inflation is currently being driven by both supply and demand factors.
“Natural disasters, rising energy costs, higher transportation expenses and broader economic uncertainties are all contributing to inflationary pressures,” Mujeri added.
Despite ongoing efforts to contain price increases, economists believe inflation is unlikely to ease significantly in the near term.
Mujeri warned that the approaching monsoon season could create further challenges if floods or other weather-related disruptions affect agricultural output and supply chains.
With food inflation rising again and non-food inflation remaining close to double digits, households are expected to continue facing elevated living costs in the coming months, presenting a further challenge for policymakers seeking to stabilise prices and support economic growth.
