Inflation eases slightly in October

The inflation rate eased slightly to 8.17% in October, down from 8.36% in September, as food prices moderated for a second consecutive month, according to the latest Consumer Price Index (CPI) report released by the Bangladesh Bureau of Statistics (BBS) on Wednesday.

Last month, food inflation dipped to 7.08% from 7.64%, while non-food inflation edged up marginally to 9.13% from 8.98%.

The figures indicate that overall price pressures—though still elevated—are easing gradually after months of double-digit inflation earlier this year.

At the rural level, overall inflation fell to 8.16% in October, compared with 8.47% in September and 11.26% in the same month last year.

Rural food inflation cooled to 6.94%, down from 7.54% in September, while non-food inflation inched up slightly to 9.41% from 9.40%.

In urban areas, inflation stood at 8.33%, almost unchanged from 8.28% in September. However, food inflation eased to 7.45% from 7.94%, while non-food inflation rose to 8.92% from 8.51%.

The urban price pattern suggests a slower pass-through of declining food costs compared to rural markets, where agricultural supply recovery and seasonal factors helped ease prices more noticeably.

Despite the mild cooling, inflation remains above the government’s target and continues to strain household budgets, particularly among lower- and middle-income groups.

October’s rate is still significantly higher than pre-2023 averages, when inflation typically hovered around 5-6%.

Officials at BBS noted that the overall index for goods and services continues to be affected by import cost volatility, supply bottlenecks, and high non-food costs—especially in housing, healthcare, and education.