Inflation rose to 9.86% in January, up from 9.41% in December, reports the Bangladesh Bureau of Statistics. Non-food inflation notably surged, while food inflation slightly decreased to 9.56%.
This increase underscores the ongoing struggle with the cost of living, particularly affecting the poor and low-income groups. Since March, inflation has remained above 9%, with significant impacts from the COVID-19 pandemic and the Russia-Ukraine conflict.
While central banks swiftly raised interest rates globally to curb inflation, the Bangladesh Bank’s actions have been more cautious and perceived as insufficient.
Inflation persists despite efforts since June, including record-high policy rates and the removal of lending rate caps.
In January, the central bank announced further measures, including another 25 basis points increase in the policy rate to 8%, marking the eighth consecutive hike since May 2022.
It reduced the private sector credit growth target, all aimed at reducing inflation to 7.5% by the fiscal year’s end.