Inflation falls to 22-month low

Overall inflation in Bangladesh has eased to 9.32 percent in February, the lowest in 22 months.

Bangladesh Bureau of Statistics, or BBS, released the updated figures on Thursday.

A breakdown of the figures reveals that the slide was driven by a drop in food prices, which was observed in both urban and rural areas.

According to BBS, overall inflation in January stood at 9.94 percent, meaning inflation has fallen by 0.62 percentage points in a month.

Inflation was lower than this in April 2023 last, when it stood at 9.24 percent.

An upward trend has persisted since then, peaking at 11.66 percent in July 2024.

So, an item or service priced at Tk 100 in February 2024 cost Tk 109.32 in February 2025.

Food inflation in February fell by 1.48 percentage points to 9.24 percent, down from 10.72 percent in January.

However, non-food inflation saw a slight increase, rising to 9.38 percent in February from 9.32 percent in January.

A sharp drop in food prices was recorded in urban areas, where food inflation declined to 9.47 percent in February from 10.95 percent in January, marking a 1.48 percentage point decrease.

In rural areas, food inflation dropped by 1.46 percentage points, falling to 9.15 percent in February, down from 10.61 percent in January.

Non-food inflation in rural areas increased by 0.12 percentage points, reaching 9.85 percent in February, up from 9.77 percent in January.

Urban non-food inflation increased by 0.2 percentage points, standing at 9.27 percent in February, compared with 9.25 percent in January.

Inflation had peaked at 11.66 percent in July before gradually slipping to 10.49 percent in August and 9.92 percent in September.

However, it rebounded by 2.07 percentage points in October, reaching 10.87 percent, followed by another increase of 0.51 percentage points in November, adding to the financial strain on low-income households.

Despite a slight dip in December, Bangladesh ended 2024 with double-digit inflation.

Though inflation further declined in January, it remained higher than in January 2023.