Bangladesh's inflation hits a 26 month low at 9.17% in April

Inflation in Bangladesh has eased to 9.17 percent in April, reaching the lowest level in 26 months, driven by declines in both food and non-food prices in urban and rural areas, according to new government data.

The Bangladesh Bureau of Statistics on Monday released updated figures showing that overall inflation in April has eased compared with the same month last year, when it stood at 9.74 percent.

The rate was 9.35 percent in March this year.

A 9.17 percent inflation rate means goods or services that cost Tk 100 in April last year now cost Tk 109.17.

This marks the lowest inflation reading since February 2023, when the rate stood at 8.87 percent.

The latest data reveals a rare drop in both food and non-food inflation across rural and urban areas, the first since June of the last fiscal year.

Although February this year also saw a notable decline, that drop was confined to the food sector.

Since February 2023, inflation had consistently remained above 9 percent, peaking at 11.66 percent in July 2024 during the month of mass uprising.

In January this year, the rate dropped to 9.94 percent, falling further to 9.32 percent in February.

After a slight uptick in March, the April figures confirm a renewed downward trend.

Food inflation dropped from 8.93 percent in March to 8.63 percent in April.

Non-food inflation also declined to 9.61 percent in April from 9.70 percent the previous month.

In urban areas, food inflation eased from 9.18 percent in March to 9.13 percent in April while non-food inflation dropped from 9.95 percent to 9.88 percent.

In rural areas, food inflation fell more sharply — from 8.81 percent to 8.40 percent — while non-food inflation went down from 9.97 percent to 9.86 percent.

The interim administration took office following the Aug 5, 2024, student-led mass uprising that toppled the Sheikh Hasina government.

Shortly after assuming the role of chief advisor, Muhammad Yunus pledged swift action to rein in inflation.

The caretaker administration raised interest rates multiple times to curb money supply and dampen demand.

While the government’s data show a downward trend in inflation for the past four months, consumers say the benefits have yet to reach retail markets.