Inflation rises to 8.49pc in Dec, what impact on household expenses

Inflation has risen for two consecutive months, with overall inflation increasing to 8.49 per cent in December after having already gone up in November.

The Bangladesh Bureau of Statistics (BBS) released the inflation data for December on Monday.

Inflation has been fluctuating over the past year. However, it has remained within the 8 per cent range.

Inflation increased slightly in December. Earlier, in November, inflation had risen to 8.29 per cent. In December, it increased further to 8.49 per cent.

According to BBS calculations, food inflation stood at 7.71 per cent in December, while non-food inflation was 9.13 per cent. Food inflation has been rising for three consecutive months.

High inflation has prevailed in the country for the past three years. In 2025, the average inflation rate was 8.77 per cent.

Inflation works like a kind of tax. Your entire monthly income goes toward running your household. But when the prices of goods suddenly rise and your income does not increase accordingly, you are forced to borrow to manage household expenses or cut back on spending on food, clothing, transportation, and other areas.

When wage growth or income growth lags behind inflation, hardship for ordinary people increases. Real income declines.

According to BBS, the national wage growth rate in December was 8.08 per cent. This means wage growth was lower than the inflation rate.

On the other hand, a decline in the inflation rate does not mean prices of goods are falling. It simply indicates that price increases were relatively lower in that particular month compared to other months.

For example, if purchasing goods and services from the market cost you Tk 100 in December 2024, an inflation rate of 8.49 per cent means that in December 2025—one year later—you had to spend Tk 108.49 to buy the same goods and services. For every Tk 100, your expenditure increased by Tk 8.49.

Another example: if a family needed Tk 100,000 to manage household expenses a year ago, due to inflation they would need to spend an additional Tk 8,490 in December this year. This is a national average estimate. However, the impact of inflation is greater on the poor and people with limited incomes.

Controlling inflation has emerged as one of the major challenges for the economy over the past two to three years. After the interim government came to power, interest rates were raised in an effort to control inflation.

The National Board of Revenue (NBR) also reduced duties and taxes on several essential commodities, including fuel oil, potatoes, onions, and eggs. Efforts were made to maintain steady imports of essential goods in the market.