The rate of inflation eased slightly in December but remained above the double digit level for the third consecutive month.

According to the Bangladesh Bureau of Statistics (BBS), the general inflation rate stood at 10.89 per cent in December, compared to 11.38 per cent in November.

With the latest monthly update released by the BBS on Monday, inflation has remained in double digits since October.

The interim government assumed power on August 8, following the ousting of the Awami League regime amid a mass uprising.

Since then, the government has taken several steps, including reducing import duties on rice, potatoes, onions, eggs, edible oils, dates, and pesticides, in an attempt to curb the decade-high inflation that has persisted over the past two years.

However, these measures have yet to yield any positive results in containing inflation.

Finance adviser Saleuddin Ahmed attributed the high inflation to the presentation of actual data, while suggesting that the previous political regime had manipulated inflation figures.

The BBS update indicated that food inflation at the national level stood at 12.92 per cent in December, despite the arrival of winter vegetables.

In urban areas, food inflation, which was recorded at 14.63 per cent in November, eased slightly to 13.56 per cent in December.

However, the majority of people continue to face hardship in maintaining their daily needs, as the wage increase of 8.14 per cent in December remains far below the inflation rate.

Economists warned that there is little relief for consumers in the coming months, as inflationary pressure is likely to persist due to an increase in the Value Added Tax (VAT) on 43 items and services, including clothes, restaurant bills, liquefied petroleum gas, air tickets, detergents, and cigarettes.

Some of these items are widely consumed by the majority of people, and the additional tax burden will likely push inflation even higher, according to Zahid Hussain, former Chief Economist of the World Bank Dhaka office.

The International Monetary Fund (IMF), which has been providing Bangladesh with a $4.7 billion credit facility to help maintain the balance of payments since 2023, has also warned of continued high inflation.

Reviewing the current loan programme last month, the IMF projected that inflation would average around 11 per cent in FY25, although it expects inflation to drop to 5 per cent in FY26, supported by tighter policies and easing supply pressures.

Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue, stressed the need to streamline the supply chain of essentials.

He also called for action against extortion and a reduction in the number of middlemen and intermediaries.