Bangladesh’s inflation rate slowed to its lowest level in more than three years in August 2025, offering a measure of relief for policymakers but little comfort for households still grappling with elevated prices of essentials.

According to data released by the Bangladesh Bureau of Statistics (BBS) on Sunday, point-to-point inflation eased to 8.29 per cent in August, compared to 8.55 per cent in July.

This is the lowest reading since July 2022, when inflation was recorded at 7.48 per cent.

The following month, however, inflation surged to 9.52 per cent and has since remained stubbornly high, driven by global supply shocks, currency depreciation, and rising import costs.

The fall in August was largely attributed to easing non-food inflation, which declined sharply to 8.9 per cent from 9.38 per cent in July.

In contrast, food inflation edged up slightly to 7.6 per cent from 7.56 per cent, underlining continued strain on household budgets.

Rural and urban areas both recorded declines in inflation: in rural regions the rate stood at 8.29 per cent, while in urban centres it fell to 8.24 per cent, down from 8.95 per cent in July.

Despite this moderation, the prices of most staples have remained high in recent weeks.

Rice prices have hovered between Tk 55 and Tk 85 per kilogram for nearly three months.

One-kilogram packs of atta and maida were selling at Tk 65 and Tk 75 respectively, while eggs cost Tk 150 per dozen.

Broiler chicken ranged from Tk 165 to Tk 185 per kilogram, onions stood at Tk 80 to Tk 85 per kilogram, and almost no vegetable was available for less than Tk 80 per kilogram.

Fish prices also remained steep, forcing many families to cut back on regular consumption. Non-food items such as medicines and fuel also continued to strain consumer finances.

The broader inflationary trend of the past three years highlights the scale of the challenge.

Inflation stood at 8.71 per cent in December 2022, rose to 9.41 per cent in December 2023, and peaked at 10.89 per cent in December 2024.

The average inflation for the 12 months to August 2025 remained high at 9.58 per cent, far above the government’s projections.

For comparison, inflation in August 2024 was 10.49 per cent, with food and non-food inflation at 11.36 per cent and 9.74 per cent respectively.

The interim government, which assumed office following the ouster of the Awami League-led administration in August 2024, has placed inflation control at the centre of its economic agenda.

In the budget speech for the 2025–26 fiscal year, finance adviser Salehuddin Ahmed set an ambitious target of reducing average inflation to 6.5 per cent, though analysts remain sceptical given the entrenched price pressures.

While headline inflation has eased, real wages continue to lag. Wage growth for low-paid skilled and unskilled workers slowed to 8.15 per cent in August, extending a 43-month stretch during which earnings have failed to keep pace with inflation.

This persistent gap underscores the difficulty many households face in maintaining living standards, even as official figures suggest some cooling of price pressures.