Bangladesh inflation rises to 8.34% in September as food prices climb

Bangladesh’s inflation rose to 8.34% in September from 8.26% in August, driven by higher food inflation, while wage growth continued to lag behind the overall rise in prices.

According to the latest data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday, food inflation increased to 7.22% in September from 7.02% in August. Non-food inflation, however, eased slightly to 9.30% from 9.32%.

The rise in overall inflation came despite a slower month-on-month increase in prices. The general price index rose 1.12% in September, compared with 2.31% in August. Food prices increased 1.34% during the month, while non-food prices rose 0.94%.

The figures also show continued pressure on household purchasing power, with wage growth remaining below inflation.

The national Wage Rate Index increased 7.90% year-on-year in September, down from 8.05% in August and 8.22% in July. As a result, wage growth was 0.44 percentage point below headline inflation in September.

The BBS wage index covers 63 occupations across the agriculture, industry and services sectors and measures changes in the wages of low-paid skilled and unskilled workers.

Among the major sectors, wage growth stood at 7.89% in agriculture, 7.86% in industry and 8.07% in services in September.

Inflation was higher in rural areas than in urban areas, with rural inflation at 8.38% compared with 8.26% in urban areas. Rural food inflation stood at 7.18%, while urban food inflation was 7.25%.

Among major expenditure groups, restaurants and hotels recorded the highest inflation at 13.26%, followed by alcoholic beverages, tobacco and narcotics at 11.99%. Clothing and footwear prices rose 10.31%, while transportation costs increased 9.46% year-on-year.

The latest figures indicate that although monthly price pressures moderated in September, the cost of living continued to rise faster than wages, keeping pressure on household purchasing power.