Inflation in Bangladesh decreased slightly to 10.89% in December 2024, yet it still remained in the double-digit range.
This information is based on the latest data released by the Bangladesh Bureau of Statistics (BBS).
In November, the inflation rate in Bangladesh was recorded at 11.38%.
This means that a basket of goods that cost Tk100 in December 2023 cost Tk110.89 in December 2024.
The BBS data analysis revealed the average inflation rate in 2024 from January to December was in double digits at 10.34%, up from 9.48% in 2023.
Among all the inflation figures, urban food inflation witnessed the biggest drop in December. It is down from 14.63% in November to 13.56% in December, a sharp 107 basis-point drop.
The overall food inflation declined to 12.92% in December, compared to 13.80% in November 2024 and in December 2023, it was 9.58%.
That means food inflation decreased by 0.88 percentage points from November; it remains significantly higher than the previous year.
On the other hand, non-food inflation also experienced a slight decline of 0.13 percentage points month-on-month but increased year-on-year by 0.74 percentage points.
According to BBS data, the overall non-food inflation declined to 9.26% in December, compared to 9.39% in November 2024 and in December 2023, it was 8.52%.
BBS released the updated numbers on point-to-point inflation on January 6.
The latest data stated that rural inflation in December was 11.09%, down from 11.53% in November.
On the other hand, urban inflation was 10.84% in December, down from 11.37% in November.
Regarding ease in inflation, insiders said the lower prices of essential commodities, including fresh vegetables, contributed to the drop.
The increase in the supply of winter vegetables in December has led to a decline in the prices of these products in the market. In addition, to curb inflation the government has lifted customs duties and other taxes on several products to reduce the prices of imported products. The policy interest rate has also been increased. As a result, some impact of these measures on the prices of products in the market is being seen.
However, Bangladesh has been grappling with persistent inflation for more than two years despite several measures taken by the government and authorities.
However, regarding the data calculation process, BBS informs that data are usually collected from selected shops in each market or selected units or service providers in case of services. In constructing price indices, the average price for each item is considered.
BBS collects price data from 154 main markets across the country. Of them, 90 are from urban areas (12 from Dhaka city, 4 from Chattogram city, 18 from other 6 divisional cities, 56 from other 56 districts) and 64 from rural areas in 64 districts.
Three price quotes per item with varieties are collected from each of the markets. Both in rural and urban areas, prices of 127 food items with 242 varieties as well as 256 non-food items with 507 varieties are collected.
BBS also notes that in collecting prices, the rural and urban factors are on a monthly basis while Dhaka and Chattogram City Corporations are on a weekly basis each month.
