Bangladesh Inflation Rate at 10-Month Low

The annual inflation rate eased to 8.26% in August 2026 from 8.32% in the previous month, marking the lowest reading since October. Price growth slowed for food and non-alcoholic beverages (7.16% vs 7.02% in July), housing and utilities (9.44% vs 9.48%), health (3.48% vs 3.9%), education (7.34% vs 8.73%), and restaurants and hotels (12.49% vs 12.57%). In contrast, inflation accelerated for transport (9.41% vs 9.34%), alcoholic beverages, tobacco and narcotics (11.83% vs 10.58%), clothing and footwear (9.94% vs 9.75%), furnishings, household equipment and routine household maintenance (6.67% vs 6.58%), communication (7.75% vs 6.9%), recreation and culture (9.3% vs 8.8%), and miscellaneous goods and services (14.75% vs 14.49%). On a monthly basis, consumer prices rose 2.31%, accelerating from 1.44% in July and marking the highest reading since August 2025.

The annual inflation rate in Bangladesh rose to 8.32% in July 2026, easing from 9.16% in the previous month. This reading marked the lowest level since November 2025, as inflation slowed the most in food and non-alcoholic beverages (7.16% vs 8.60% in June), transport (9.34% vs 10.10%), housing and utilities (9.48% vs 9.63%), health (3.90% vs 4.28%), communication (6.90% vs 9.76%), recreation and culture (8.80% vs 9.80%), and education (8.73% vs 9.11%). Meanwhile, inflation remained elevated for restaurants and hotels (12.57% vs 11.70%), clothing and footwear (9.75% vs 9.64%), and furnishings, household equipment, and routine household maintenance (6.58% vs 6.43%). On a monthly basis, consumer prices rose 1.44%, accelerating from 0.34% in June and marking the strongest monthly gain since October 2025. Bangladesh remains among the countries most vulnerable to disruptions related to the Middle East conflict due to its heavy reliance on imported fuel and limited reserve supplies.

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.