Inflation eases in June but stays over 9.5%

Inflation declined in June but it remained above 9 percent, showing signs of persistent erosion of purchasing capacity of people.

Last month, consumer prices grew 9.72 percent, which was slightly lower than 9.89 percent recorded in May thanks to the easing of food prices, according to data released by the Bangladesh Bureau of Statistics (BBS) today.

With June figures, average inflation rose to 9.73 percent in the fiscal year 2023-24 – much higher than the government's target of containing the spike within 7.5 percent for the fiscal.

Consumer prices in Bangladesh have been staying stubbornly high at over 9 percent for more than a year, despite the central bank had hiked its interest rate for lending to conventional banks to curb money supply several times over the last year.

Economists suggested further monetary tightening to curb prices. 

During the fiscal 2022-23, overall inflation was 9.02 percent.

The BBS data showed that food inflation stood at 10.42 percent in June, down from 10.76 percent in May. 

Non-food price growth slowed to 9.15 percent in June from 9.19 percent a month ago, according to the BBS.

Inflation moderated both in rural and urban areas in June compared to May, data by the BBS showed.