Inflation crosses 9pc again, highest in 10 months

Inflation

Inflation has risen above 9 per cent again, with the overall rate reaching 9.13 per cent in February.

This means inflation returned to the 9 per cent range after nine months. Inflation was recorded at 9.05 per cent in May last year.

Inflation in February was also the highest in the past 10 months. It stood at 9.17 per cent in April last year. After April last year, the February figure is the highest.

The Bangladesh Bureau of Statistics (BBS) published the inflation data for February today, Sunday. Inflation has increased for four consecutive months. As a result, pressure on middle-income and limited-income people has intensified.

According to BBS data, food inflation stood at 9.30 per cent in February, while non-food inflation was 9.01 per cent. Food inflation has increased for five consecutive months.

The country has been experiencing high inflation for three years. Average inflation stood at 8.77 per cent in 2025.

How inflation affects people

Inflation acts like a kind of tax. If your entire monthly income is spent on running your household, a sudden increase in the prices of goods will create problems if your income does not rise accordingly.

In that case, you may have to borrow money to run your family or cut spending on food, clothing, transport and other necessities.

People suffer more when wage or income growth is lower than inflation. Real income declines.

BBS says the national wage growth rate was 8.06 per cent in February. This means wage growth was lower than the inflation rate.

On the other hand, a decline in inflation does not mean that prices of goods have fallen. It simply means that price increases in a particular month were lower compared with other months.

For example, if you spent Tk 100 to buy goods and services in February 2025, an inflation rate of 9.13 per cent means that in February 2026—one year later—you had to spend Tk 109.13 to buy the same goods and services.

In other words, your spending increased by Tk 9.13 for every Tk 100.