Aug inflation eases amid price surge

Inflation in Bangladesh eased by six basis points to 8.26 per cent in August from 8.32 per cent in July, mainly due to a slight decline in food inflation, according to the Bangladesh Bureau of Statistics. The latest issue of Consumer Price Index, Inflation Rate and Wage Rate Index in Bangladesh, released by the BBS on Monday, showed that point-to-point food inflation dropped by 14 basis points to 7.02 per cent in August from 7.16 per cent in July. Non-food inflation, however, increased by four basis points to 9.32 per cent from 9.28 per cent during the same period, remaining substantially above food inflation. Despite the marginal decline in point-to-point inflation, the BBS data revealed a sharp 2.31-per-cent rise in the overall price level in August compared with July. Food prices increased by 3.86 per cent within a single month, while non-food prices rose by 1.05 per cent. Economists expressed concern over the sharp monthly increase, which followed another significant rise in July. Former Bangladesh Institute of Development Studies director general Mustafa K Mujeri said that the recent trend indicated the possibility of a further sharp increase in prices in the coming months. 'The figure is alarming, as the average monthly increase in prices was only 0.36 per cent during the earlier months of the past one-year period,' he said. The BBS data reveals that the monthly surge was driven mainly by food prices, which had already increased by 2.57 per cent in July and 0.53 per cent in June. The apparent contrast between falling point-to-point food inflation and rapidly rising monthly food prices reflects differences in the two measures. Point-to-point inflation compares prices with those in the corresponding month of the previous year, while month-on-month inflation captures price changes from the immediately preceding month. Overall point-to-point inflation stood at 9.16 per cent in June, 8.32 per cent in July and 8.26 per cent in August, while the rate was 8.29 per cent in August 2025. Among the major consumption categories, miscellaneous goods and services recorded the highest point-to-point inflation of 14.75 per cent in August, up from 14.49 per cent in July. Inflation for restaurants and hotels remained elevated at 12.49 per cent, while inflation for alcoholic beverages, tobacco and narcotics increased to 11.83 per cent. Clothing and footwear inflation rose to 9.94 per cent, transportation inflation to 9.41 per cent and recreation and culture inflation to 9.30 per cent.