Inflation in Bangladesh has dropped to its lowest level in 23 months, providing some relief to consumers after prolonged economic hardship. According to the latest Consumer Price Index (CPI) report from the Bangladesh Bureau of Statistics (BBS), the country’s inflation rate fell to 9.32% in February 2025, marking a continued decline over the past two months.
A Declining Trend
Bangladesh has been grappling with high inflation since August 2022, when fuel price hikes pushed inflation beyond 9.5%. The outgoing Awami League government left behind a major economic challenge in the form of persistent inflation, which the interim government has been attempting to control.
Despite remaining high in the initial months of the interim government’s tenure, inflation has gradually declined since the beginning of 2025. The February inflation rate of 9.32% means that an item that cost Tk 100 in February 2024 now costs Tk 109.32.
The last time inflation was lower than this was in April 2023, when it stood at 9.24%. Economists view this decline as a positive sign but emphasize the need for additional measures to ensure long-term stability.
Food and Non-Food Inflation
The report also highlights a drop in food inflation, which stood at 9.24% in February, compared to 10.72% in January. The availability of winter vegetables and essential commodities at lower prices contributed to this decline. However, non-food inflation slightly increased, reaching 9.38% in February, up from 9.32% in January.
Experts caution that while inflation has decreased, overall price levels remain high, affecting the purchasing power of fixed-income and low-income groups. Dr. Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), noted that while the downward trend in inflation is encouraging, it is crucial to analyze whether the reduction is benefiting lower-income households.
Challenges Ahead
Despite the recent decline, inflation could rise again in April, as climate-related disruptions between April and October often impact agricultural production, leading to higher food prices. Economists suggest that the government should closely monitor price movements and implement policies to stabilize essential commodity prices.
Liberty News’ economic correspondent states that while inflation is moving in the right direction, its long-term impact on the economy and household expenses remains a key concern for policymakers.
LND/BG
