June inflation remains high with food inflation at 10.42pc

Bangladesh’s food inflation slightly declined to 10.42% in June 2024, from 10.76% in May 2024, according to data from the Bangladesh Bureau of Statistics (BBS).

The BBS report also indicated a marginal decrease in non-food inflation, which fell to 9.15% in June from 9.19% in May.

Overall, the country’s inflation rate dipped to 9.72% in June from 9.89% in May. The updated inflation data was released by BBS today.

An inflation rate of 9.72% means consumers now spend Tk109.72 on goods and services that cost Tk100 in June of the previous year, reflecting an increased cost of living.

This rise disproportionately impacts low and fixed-income individuals, who struggle the most to manage their household expenses amid rising prices.

Bangladesh has faced persistent high inflation for the past two years, consistently hovering above 9%. Despite various government measures aimed at curbing inflation, these efforts have yet to yield significant results.

Economists highlight that high inflation remains one of the most pressing challenges for the country’s economy.

Dr Ahsan H Mansur, Economist and Executive Director of the Policy Research Institute (PRI), commented on the situation, saying, “Inflation acts like a tax, affecting everyone, rich and poor alike. Higher inflation means that poor and middle-class families struggle to increase their incomes sufficiently to support their households. Over the past two years of high inflation, people’s purchasing power has significantly decreased, affecting all aspects of their lives.”