Inflation drops at the very beginning of new fiscal year

After remaining above 9 percent for three consecutive months, the country's inflation rate dropped to 8.32 percent in July. The Bangladesh Bureau of Statistics (BBS) published this data regarding the decline in inflation in the first month of the new fiscal year.

In June, inflation stood at 9.16 percent. Prior to that, it was 9.42 percent in May and 9.4 percent in April. This means that after staying above 9 percent for three consecutive months, it has once again fallen below 9 percent in July.

According to BBS calculations, food inflation in July was 7.16 percent, while non-food inflation was 9.28 percent. The average inflation rate for the recently concluded 2025–26 fiscal year was 8.68 percent.

However, despite the drop in inflation, the pressure of the cost of living on ordinary people has not completely eased. Transportation costs for goods have increased due to higher fuel oil prices, which has impacted the prices of various commodities, including vegetables, fish, and meat. Rice prices also remain elevated.

Meanwhile, the national average wage growth rate in July was 8.22 percent. This means that the rate of inflation exceeded the rate at which people's wages increased. As a result, with real incomes declining, limited and middle-income families continue to face pressure in running their households.

When inflation outpaces income growth, people's purchasing power declines. This creates situations where individuals are forced to cut back on necessary expenses like food, clothing, and transportation, break into savings, or rely on borrowing.