In July, the first month of the current FY27, overall point-to-point inflation fell to 8.32%.
In June, the rate stood at 9.16%, marking a decrease of 0.84 percentage points over a single month.
July’s inflation figure is the lowest recorded in the last eight months. Previously, general inflation was at 8.49% in November 2025; it had not reached a lower level since then.
These figures were revealed in the latest statistical release published by the Bangladesh Bureau of Statistics (BBS) on Tuesday.
According to BBS data, inflation declined in both food and non-food sectors in July.
However, a drop in food prices played the main role in reducing overall inflation.
Food inflation saw a significant decline in July, falling to 7.16% compared to 8.60% in June. This represents a drop of 1.44 percentage points in a single month.
This is the lowest food inflation rate since October 2025, when it stood at 7.36%. In July of last year, food inflation was 7.56%.
Experts believe this sharp drop in food inflation was the primary driver behind the decline in overall inflation for July.
Inflation for non-food items and services also experienced a slight reduction. In June, non-food inflation was 9.61%, which dropped to 9.28% in July—a decrease of 0.33 percentage points over the month.
However, non-food inflation remains significantly higher than food inflation.
With this sector hovering around 9% for several consecutive months, the cost of living for the general public has not yet reached a comfortable level.
July’s non-food inflation rate of 9.28% is the lowest since March of this year, when it was 9.09%. In July of last year, non-food inflation stood at 9.38%.
BBS statistics also show a slight divergence between rural and urban inflation rates. In July, overall inflation in rural areas was 8.36%, while in urban areas it was 8.24%.
This indicates that inflationary pressure was slightly higher in rural regions compared to cities.
Still above govt target
Despite the decline, inflation remains well above the target set by the government. The budget for the current fiscal year aims to keep average annual inflation within 7.5%.
Although inflation fell to 8.32% in July, it remains 0.82 percentage points above the target.
In his budget speech, Finance Minister Amir Khosru Mahmud Chowdhury stated that restoring peace of mind and purchasing power to ordinary citizens through sustainable economic discipline is one of the government's primary goals.
Overall, July’s inflation metrics point toward a slight economic relief. In particular, food inflation falling into the 7% range and overall inflation reaching an eight-month low are seen as positive developments.
However, a lower inflation rate does not mean prices have dropped; rather, it indicates that the rate of price increases has slowed.
Consequently, the financial strain on consumers caused by prolonged high inflation cannot be fully erased by a single month’s data.
With non-food items and services remaining above 9%, living costs continue to weigh heavily on the general public. Bringing inflation down closer to the government's 7.5% target remains a key challenge for the economy.