Inflation in Bangladesh rose from 9.74% in April to 9.89% in May, marking the highest rate in the past seven months, according to the Bangladesh Bureau of Statistics (BBS) on Monday. The last time inflation was this high was in October last year, at 9.93%.
Food inflation surged by 54 basis points to 10.76% in May from 10.22% in April, while non-food inflation decreased by 15 basis points to 9.19% from 9.34% in April. Inflation has remained in double digits for the last two months, having dipped below 10% in December after reaching 10.76% in November last year.
State Minister for Finance Waseqa Ayesha Khan expressed optimism in parliament on May 5, stating that inflation would decrease to the government-set target of 7.5% by the end of FY24.
Economists at a Bangladesh Economic Association (BEA) session last month highlighted that rising inflation has made essential commodities like food and fuel increasingly unaffordable, particularly for low-income earners. They attributed the price hikes to government policy failures and unethical pricing practices by businesses. Dr. Foyasal Khan, executive director of the Bangladesh Institute of Policy Studies (BIPS), emphasized the need for an integrated effort by all stakeholders to combat these issues. His survey revealed that 97% of respondents believe businesses deliberately raise prices during Ramadan, contributing to the May inflation spike.
