Inflation falls to 8.32% in July, lowest in 8 months
Food inflation dropped sharply to 7.16% in July from 8.60% in June and 7.56% a year earlier
Bangladesh's headline inflation fell to 8.32% in July, reaching its lowest level in eight months as both food and non-food inflation eased, shows latest data released by the Bangladesh Bureau of Statistics (BBS) today (11 August).
Point-to-point general inflation stood at 9.16% in June 2026. The latest rate is the lowest since November 2025, when general inflation stood at 8.49%.
Food inflation dropped sharply to 7.16% in July from 8.60% in June and 7.56% a year earlier. The latest rate reached its lowest in nine months.
Non-food inflation also eased, falling to 9.28% in July from 9.61% in June and 9.38% in July last year. Although non-food inflation remained above 9%, it fell to its lowest in four months.
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Meanwhile, BBS data showed that wage growth edged up slightly in July. The national general wage rate rose to 8.22% year-on-year in July, compared with 8.18% in June. Despite the increase, wage growth has remained below inflation for 53 consecutive months.
BB policies, seasonal factors help reduce inflation
Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said the decline reflects the impact of the central bank's policies and seasonal factors.
"Seasonal factors depend largely on time and natural conditions. When production improves somewhat, the supply of goods increases, which in turn affects prices," he said.
Seasonal effects appear to be stronger than before, Mujeri said. "The fall in food inflation is particularly encouraging and provides some relief in the overall price situation," he said.
The economist said the downward trend could continue until March, although inflation still has a long way to go before reaching the desired level.
"Therefore, the positive effects currently visible need to be sustained," he said. "More effective market management is needed to prevent price fluctuations."
He added, "Supply conditions need to remain normal, prices should be monitored regularly, and prompt action should be taken wherever abnormal price increases are detected."
Weak demand, fiscal measures
Sayema Haque Bidisha, economics professor at the DhakaUniversity, attributed the decline to several factors, including fiscal measures and relatively weak demand-side pressure.
She said the government's budget decision to withdraw or reduce advance income tax (AIT) on several essential commodities may also have helped contain inflation. "Some impact of these policy measures may now be visible in the market," Bidisha said.
Inflation broadly stems from demand-side and cost-side pressures. Bidisha said demand-pull pressure has remained relatively subdued, as there has been no major festival or sudden surge in consumer demand in recent months.
"Overall, better market management, fiscal and budgetary measures, and relatively low demand-pull pressure have had a positive impact on the current situation," she said.
However, Bidisha said inflation remained high despite the recent decline.
"Inflation has remained high in Bangladesh for a prolonged period. So, although the rate has fallen somewhat, it is still high. The downward trend over the past quarter is nevertheless a source of some relief," she said.
The government must now adopt strong and effective measures to sustain the downward trend, particularly by strengthening market management, she added.
