Inflation ticked up in March after a slight easing in the previous month, offering no relief to consumers already grappling with the persistent erosion of purchasing power caused by soaring prices throughout Bangladesh.

In March, inflation, which measures the increase in prices of a basket of goods and services over time, climbed to 9.81 per cent, up from 9.67 per cent in February.

This increase was driven by higher prices of both food and non-food items, according to data released on Tuesday by the Bangladesh Bureau of Statistics.

During March, the prices of essential items such as rice, potatoes, and pulses surged, further reducing the buying ability of low-income and impoverished individuals who spend a substantial portion of their income on food.

Nationally, food prices increased by 9.87 per cent in March, up from 9.44 per cent in February.

Non-food prices also saw a sharper rise in March compared to the previous month.

The uptick in March prices is expected to push the annual average inflation rate higher from the 9.6 per cent recorded in February, signaling that the tight monetary policy pursued by the Bangladesh Bank has yet to make a significant impact on the market.

In a recent report, the World Bank highlighted that inflation remained high in the first half of the current fiscal year, primarily due to escalating food and electricity costs.

The report noted, ‘High inflation has thwarted poverty reduction efforts. Increased food prices have had a particularly harsh impact on impoverished households, which allocate over half of their budget towards food expenditures.’

Given persistent inflation above 9 per cent for over a year, the government previously revised the inflation target upwards to 7.5 per cent for fiscal year 2023-24.

The World Bank estimated that approximately 500,000 people in Bangladesh fell into extreme poverty between fiscal years 2022-23 and 2023-24 due to the erosion of purchasing power.

Additionally, it projected that 840,000 individuals would transition into the ranks of moderately poor, defined as those earning $3.65 per day in purchasing power parity.