Vegetable prices drop, keeps food inflation at bay

While the prices of certain commodities are declining in the domestic market, the costs of several daily essentials continue to rise.

A drop in the prices of vegetables, alongside rice and wheat, has led to a slight improvement in food inflation.

However, prices for nutritious items such as eggs, potatoes, fish, meat, and milk remain elevated.

Coupled with high prices for fuel and import-dependent goods, this is driving up the cost of living for ordinary citizens.

According to a Bangladesh Bank report titled "Inflation Dynamics in Bangladesh: July–September 2026," average food inflation dropped to 7.13% in the first quarter of FY27, down from 8.68% in the previous quarter.

Over the same period, overall inflation decreased from 9.21% to 8.31%.

Despite the decline in food inflation, not all commodity prices have fallen.

Protein-rich foods, in particular, are seeing price increases, with these items accounting for over 51% of food inflation.

Even as food prices have eased somewhat, inflation in the fuel sector has risen.

Bangladesh Bank data shows that fuel sector inflation reached 17.4% in the first quarter of the current fiscal year, compared to 17% in the previous quarter.

Inflation for traditional fuels—such as firewood, agricultural waste, cow dung, and jute sticks—increased from 21.8% to 22.1%. Similarly, inflation for liquid fuels and lubricants rose from 13.8% to 14.7%.

The report notes that although fuel prices were hiked toward the end of September, their full impact was not yet entirely reflected in the Consumer Price Index (CPI).

Consequently, fuel sector inflation is expected to rise further in the future. Increased fuel prices could also exert upward pressure on transportation and production costs.

The contribution of import-dependent goods to domestic inflation is also on the rise.

According to Bangladesh Bank calculations, 27% of overall inflation in the first quarter of the current fiscal year stemmed from import-dependent food and non-food items, up from 24.9% in the previous quarter.

Conversely, the contribution of domestic products declined from 75.1% to 73%.

A report by the Bangladesh Trade and Tariff Commission (BTTC) highlights that tariffs and duties on import-dependent fruits—such as malta, apples, pears, and grapes—have been increased at various times, driving up their market prices.

Furthermore, rising prices of various commodities in global markets are spilling over into the domestic market.

Alongside everyday essentials, ordinary people are struggling to cope with the costs of house rent, transportation, and healthcare.

A recent survey by the Bangladesh Bureau of Statistics (BBS) revealed that 47% of households in the country are forced to take on debt to manage household expenses.

Bangladesh Bank's report states that because the inflation rate has outpaced wage growth over the past two years, people's real incomes and purchasing power have eroded.

Although the gap between wage growth and inflation narrowed slightly in the first quarter of the current fiscal year, it began to widen again toward September, primarily driven by a slowdown in wage growth.

Overall, while the food inflation statistics show some positive movement, the overall market situation is far from comfortable.

The high prices of fuel, import-dependent goods, and protein-rich foods, combined with sluggish wage growth, continue to exert heavy pressure on the cost of living and purchasing power of ordinary citizens.