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Food inflation dropped in January, continuing a positive trend from December. The latest data from the Bangladesh Bureau of Statistics (BBS) shows that food inflation decreased by 2.2 percentage points, reaching 10.72%. In December, food inflation was at 12.92%, and in November, it was 13.8%.
However, non-food inflation has increased slightly to 9.32% in January from 9.26% in December.
The decline in food inflation has contributed to an overall reduction in inflation by 0.95 percentage points, bringing it down to 9.94% in January. In December 2024, the inflation rate was 10.89%, while it was 9.86% in January last year.
In 2024, Bangladesh grappled with soaring inflation, averaging 10.33%, far outpacing the 7.94% wage growth. Over the past three years, inflation has consistently risen at double the rate of wages. In 2023, inflation reached 9.55%, while wages increased by just 7.43%.
Data from the Bangladesh Bureau of Statistics (BBS) highlights this growing disparity. In 2021, inflation was 5.54% against a 6.07% wage growth. By 2024, food inflation alone surged to 14.10%, marking a 16-year high and making it one of the hardest years for consumers.
While the official inflation rate initially seemed below 10%, new data revealed it had climbed to 11.66% by July 2024. Despite government reassurances, the harsh reality left many citizens struggling to afford basic necessities.
Experts suggest that the recent decline in food inflation is partly due to the large supply of vegetables during the winter season. However, they caution that food prices may rise again in the coming months, especially with the holy month of Ramadan approaching. During Ramadan, demand for food items tends to increase, which could put pressure on prices.
In addition, experts believe that if the government increases market monitoring, inflation could be further controlled. “The government should focus on managing the available supply of food in the market and ensure strict monitoring,” said an economic expert. “If not, inflation could rise again during the next few months.”
Finance Adviser Salehuddin Ahmed mentioned that the government’s measures to stabilise prices would take two to three months to show results. He added that ongoing efforts to import essential goods and control the supply chain are expected to help bring inflation down to 6%-7% by June. However, he acknowledged that the rise in prices has caused economic difficulties for many people. He also stated that the government is importing essential products before Ramadan to stabilize prices.
