Inflation eased slightly in August, with overall inflation standing at 8.29 per cent, compared to 8.55 per cent in July.
This marks the lowest inflation rate in 37 months. The last time inflation was lower was in July 2022, when it stood at 7.48 per cent. Since then, it had never fallen below 8 per cent.
The Bangladesh Bureau of Statistics (BBS) published the inflation figures for August today, Sunday.
For example, if goods and services cost Tk 100 in August 2024, with inflation at 8.29 per cent, the same goods and services cost Tk 108.29 in August 2025. That means an extra Tk 8.29 is being spent for every Tk 100.
According to BBS data, food inflation in August was 7.60 per cent, while non-food inflation stood at 8.60 per cent. Food inflation edged up slightly compared to the previous month, while non-food inflation declined.
Bangladesh has been experiencing high inflation persistently for the past three years. The average inflation rate for the 2024–25 fiscal year was 10.03 per cent.
Economists often describe inflation as a form of tax. When household incomes are entirely consumed by expenses, any sudden price hikes force families to borrow or cut back on essentials such as food, clothing, and transport.
If wage growth lags behind inflation, real incomes decline, leaving common people worse off.
However, a fall in the inflation rate does not mean prices are coming down. Rather, it indicates that prices rose slowly in that particular month, compared to other months.
For example, if goods and services cost Tk 100 in August 2024, with inflation at 8.29 per cent, the same goods and services cost Tk 108.29 in August 2025. That means an extra Tk 8.29 is being spent for every Tk 100.