Bangladesh Inflation Eases from 16-Month High

The annual inflation rate in Bangladesh slowed to 9.16% in June 2026 from May’s 16-month high of 9.24%. The moderation in inflation came as the impact of higher fuel prices faded. Among the major components, inflation eased for food and non-alcoholic beverages (8.60% vs 9.06% in May), which contributed the most to overall inflation, recreation and culture (9.80% vs 10.09%), and miscellaneous goods and services (14.98% vs 18.93%). However, inflation accelerated for housing and utilities (9.63% vs 9.26%) and transport (10.10% vs 9.86%). The Ministry of Energy of Bangladesh raised retail fuel prices for the second time in six weeks to manage surging import costs. The revised rates took effect on June 1, following the first price increase in April. On a monthly basis, consumer prices rose 0.34%, after edging up 0.03% in May, which was the weakest monthly increase since consumer deflation in November 2025.

The annual inflation rate in Bangladesh rose to 9.42% in May 2026 from 9.04% in the previous month, marking the highest reading since January 2025. Inflationary pressures intensified across most categories as the ongoing Middle East conflict disrupted energy supply chains and increased import costs for the energy-dependent economy. Bangladesh, which relies heavily on imported fuel, is vulnerable to shipping disruptions through the Strait of Hormuz. The disruption has further amplified the costs associated with the country's delayed energy transition, adding to broader price pressures. Among the major components, inflation accelerated for food and non-alcoholic beverages (9.06% vs 8.39% in April), housing and utilities (9.26% vs 8.92%), and transport (9.86% vs 9.31%). On a monthly basis, consumer prices rose just 0.03%, slowing sharply from 0.70% in April and marking the weakest monthly increase since consumer deflation in November 2025.

The annual inflation rate in Bangladesh rose to 9.04% in April 2026 from 8.71% in the previous month. The biggest upward pressure came from food and non-alcoholic beverages (8.39% vs 8.24% in March), housing and utilities (8.92% vs 8.43%), and transportation (9.31% vs 7.47%), mainly driven by higher global energy costs as Bangladesh remains among the countries most vulnerable to disruptions stemming from the Middle East conflict due to its heavy reliance on imported fuel and limited reserve supplies. Inflation also increased for alcoholic beverages and tobacco (9.81% vs 9.69%), furnishings, household equipment, and routine household maintenance (6.19% vs 6.15%), health (3.9% vs 3.69%), communication (9.21% vs 8.65%), recreation and culture (9.85% vs 9.26%), education (8.48% vs 8.32%), and restaurants and hotels (10.88% vs 10.38%). On a monthly basis, consumer prices eased to 0.7%, from a five-month high of 0.89% in March.