Dhaka: The country's overall inflation continued its downward trend for the third consecutive month, falling to 8.26 percent in August, the lowest level in the last 10 months, indicating easing price pressures in the economy.
According to Bangladesh Sangbad Sangstha, the latest data from the Bangladesh Bureau of Statistics (BBS) shows that inflation stood at 8.32 percent in July, marking a decline of 0.06 percentage points month-on-month. The figures reveal a significant decrease from 9.16 percent in June and 9.42 percent in May, amounting to a 1.16 percentage point reduction over the three-month period since May's peak.
The statistics indicate that inflation was at 8.29 percent in November 2025, followed by increases to 8.49 percent in December and 8.58 percent in January 2026. It climbed further to 9.13 percent in February, then dipped to 8.71 percent in March before rising again to 9.04 percent in April and 9.42 percent in May. The subsequent months saw a decline, with inflation reaching 9.16 percent in June, 8.32 percent in July, and 8.26 percent in August.
Food inflation also saw a decrease in August, dropping to 7.02 percent from 7.16 percent in July, and was lower than the 7.60 percent recorded in August of the previous year. This marks the second consecutive monthly decline in food inflation and a reduction compared to the rate from a year earlier.
Inflation rates fell in both rural and urban areas in August. Specifically, rural inflation decreased to 8.31 percent from 8.36 percent in July, while urban inflation declined to 8.20 percent from 8.24 percent. An improved supply of commodities in the market, coupled with various government policy measures, has contributed to easing price pressures.
In the FY2026-27 budget, the government reduced source tax on 60 essential commodities and expanded the Food-Friendly Programme and Open Market Sale (OMS) activities for low-income individuals. The Trading Corporation of Bangladesh (TCB) is also enhancing its operations to stabilize the supply and prices of essential commodities. The state-run agency is initiating a new effort to sell some imported essential commodities at comparatively lower prices without subsidy, as per the relevant authorities.
The government aims to reduce inflation to 7.5 percent in FY2026-27. The decrease to 8.26 percent in August demonstrates progress towards this target. A declining inflation rate signifies a slower pace of price increases compared to the previous period, rather than a drop in commodity prices themselves.
Maintaining the current downward trend and reducing price pressures in both food and non-food sectors will remain crucial for alleviating the cost-of-living burden on consumers. The consistent decline in inflation over the past three months, with the rate reaching a 10-month low in August, illustrates easing price pressures in the economy, particularly as food inflation has returned to the 7-percent range.