Bangladesh’s inflationary pressures intensified for a second straight month in December, with headline inflation rising to 8.49%, up from 8.29% in November, according to the Bangladesh Bureau of Statistics (BBS). The increase follows October’s 39-month low of 8.17%, signaling that price pressures remain stubborn despite tight monetary policy.
Food inflation rose to 7.71% in December from 7.36% a month earlier, while non-food inflation edged up to 9.13% from 9.08%, further straining household budgets, particularly for low- and fixed-income groups in both urban and rural areas. The consumer price index increased across regions, with the Trading Corporation of Bangladesh reporting higher prices of essentials such as rice, flour, edible oil and lentils compared to a year earlier.
Economists caution that inflation is being driven largely by structural and supply-side weaknesses rather than excess demand, raising questions about the effectiveness of prolonged monetary tightening. Former World Bank economist Zahid Hussain said inflation shows no clear sign of a sustained decline, noting that food prices in Bangladesh tend to follow entrenched trends rather than respond to credit or exchange rate measures.
Echoing the concern, Mustafa K Mujeri of the Institute for Inclusive Finance and Development argued that weak market management, value-chain inefficiencies and the role of intermediaries in creating artificial shortages are keeping prices elevated. Analysts stressed that without stronger market oversight and a coordinated policy approach combining monetary, fiscal and supply-side reforms, inflation is likely to remain above 8 percent in the near term.
