Bangladesh’s inflation in July reached a 12-year high in July at 11.66%, according to Bangladesh Bureau of Statistics data released on Monday
It was 9.72% in June.
Food inflation always went up in July, registering a record high of 14.10% and non-food inflation at 9.68%. This was 10.42% and 9.15% respectively in June.
The previous high of the general inflation rate was 9.94% last May.
July was marked by protests that began demanding quota system reforms in government jobs.
A crackdown by the government on dissenters further provoked the protests, with agitators soon demanding the resignation of the government.
July also saw a number of days with curfew in place and an internet shutdown, disrupting supply chains and hampering smooth operations of people and businesses.
Rail and port services were also suspended at this time.
In a recent forecast by the Mastercard Economic Institute (MEI), Bangladesh is expected to experience a decline in both GDP growth and inflation in the fiscal year 2025.
According to MEI, the country's GDP growth will drop to 5.7%, while inflation, after rising to 9.8% in FY24, is projected to ease to 8% in FY25.
Persistent high inflation has been eroding consumers' purchasing power, adding to the economic challenges caused by weak domestic and external demand.
Additionally, higher US dollar rates could exacerbate vulnerabilities in the external sector.
MEI suggested a shift towards more market-based rates to address these issues.
