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Inflation drops to 8.32pc in July, lowest in 8 months
Published : Tuesday, 11 August, 2026 at 9:55 PM
Observer Online Report
Collected Photo
Overall inflation in Bangladesh fell to 8.32 per cent in July, hitting an eight-month low on the back of a significant decline in food inflation, according to data released by the Bangladesh Bureau of Statistics (BBS) on Tuesday.
In June, general inflation stood at 9.16 per cent, marking a 0.84 percentage point decline within a month. General inflation had not fallen to this level since November 2025, when it reached 8.49 per cent. Point-to-point general inflation stood at 8.55 per cent in July 2025.
Major drop in food inflation
Food inflation dropped sharply to 7.16 per cent in July from 8.60 per cent in June, registering a decrease of 1.44 percentage points in a single month. This marks the lowest food inflation rate since October 2025, when it was 7.36 per cent.
On a year-on-year basis, food inflation declined by 0.40 percentage points compared to July 2025, when it stood at 7.56 per cent. The steep reduction in food prices played the primary role in pushing down overall inflation during the month.
Non-food inflation decreases
Non-food inflation also eased to 9.28 per cent in July from 9.61 per cent in June, down by 0.33 percentage points. In July 2025, non-food inflation was recorded at 9.38 per cent. The July figure represents the lowest non-food inflation rate since March this year, when it stood at 9.09 per cent.
Lowest in eight months
The BBS report confirms that the 8.32 per cent general inflation recorded in July is the lowest since November 2025, bringing the index back below the 9 per cent mark after June’s high of 9.16 per cent.
While moderating price trends in both food and non-food sectors contributed to the overall decline, the 1.44 percentage point drop in food inflation had the most significant impact.
The drop brings slight relief to low- and middle-income households who have been struggling under persistent inflationary pressure. However, with non-food inflation remaining above 9 per cent, cost-of-living pressures persist.
Impact on living standards
Rising inflation disproportionately affects low- and fixed-income groups, increasing household expenses without a corresponding rise in income. Higher fuel prices have driven up transportation costs, maintaining elevated prices for vegetables, fish, meat, and rice in the market.
In July, the national average wage growth rate stood at 8.22 per cent. Because wage growth lagged behind overall inflation, real income shrank, forcing many families to borrow or cut back on essential expenses such as food, clothing, and transport.
-SA
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
