Bangladesh’s inflation rate eased to a three-year low of 8.29% in August, largely driven by a slowdown in non-food prices, according to official data released on Sunday.

The Consumer Price Index (CPI) report from the Bangladesh Bureau of Statistics (BBS) showed a decline from July’s 8.55%, although food inflation edged slightly higher to 7.60% from 7.56% the previous month.

In practical terms, the 8.29% rate means that a basket of goods and services costing Tk100 in August 2024 required Tk108.29 in August 2025.

The sharpest drop came in non-food inflation, which fell below 8.9% compared to 9.38% in July, offsetting the modest increase in food prices.

Inflation has generally been trending downward in recent months. In June, it dipped to 8.48% — the lowest in more than two years — after reaching 9.05% in May. However, the July rebound highlighted continued volatility. 

Food prices have shown sharper fluctuations, falling to 7.39% in June from 8.59% in May before ticking up again in August.

Economists credit the recent easing to a mix of government and central bank measures, including tighter monetary policies, reduced import duties on essential goods, and stricter market oversight.

Still, they caution that sustaining the trend remains uncertain amid global economic instability and the continued appreciation of the dollar, which could raise import costs.

SMS/