Bangladesh’s inflation surged to a 16-month high in May, driven by rising food and fuel costs, intensifying pressure on households already grappling with elevated living expenses.
According to the latest data released on Sunday by the Bangladesh Bureau of Statistics (BBS), point-to-point inflation rose to 9.42 percent in May, up from 9.04 per cent in April.
This marks the highest level since February 2025 and the second consecutive month inflation has remained above 9 percent.
Food inflation climbed sharply to 9.06 percent in May from 8.39 percent in April, reflecting higher prices of essential commodities. Non-food inflation also edged up to 9.71 percent from 9.57 percent in the previous month.
The rise in inflation coincides with recent increases in fuel prices, which economists say have had a cascading effect across the economy.
On April 19, the government raised fuel prices significantly, with diesel rising to Tk 115 per litre from Tk 100, kerosene to Tk 130 from Tk 112, octane to Tk 140 from Tk 120, and petrol to Tk 135 from Tk 116. A further hike on May 31 is yet to be reflected in the latest inflation data.
Analysts warn that the full impact of the latest fuel and electricity price increases—announced last week—could push inflation even higher in June.
Higher fuel costs have already translated into increased transportation and production expenses, pushing up prices of vegetables, fish and meat, and other daily essentials. Rice prices have also risen by Tk 2–3 per kilogram in recent weeks, adding to consumer strain.
BBS data show that inflation rose across both rural and urban areas. In rural regions, overall inflation reached 9.48 percent in May, while in urban areas it stood at 9.25 percent.
Despite the surge in prices, wage growth has lagged behind. The national average wage growth stood at 8.21 percent in May—well below the inflation rate—indicating a decline in real incomes.
Economists say this mismatch is eroding purchasing power, forcing many low- and middle-income households to cut back on spending, dip into savings, or rely on borrowing to meet basic needs.
Although the 12-month average inflation eased to 8.63 percent during July 2025–May 2026, down from 10.13 percent a year earlier, the persistent rise in monthly inflation remains a key concern for policymakers.
With essential costs continuing to climb, consumers across the country face mounting financial stress, underscoring the urgency for measures to stabilise prices and protect vulnerable groups.