Inflation rises further as prices spike

December rate 8.49pc in rise from November's 8.29pc

FE REORT | Published: January 05, 2026 23:10:23

Inflation rises further with December rate up at 8.49 per cent on a point- to-point basis in an apparent defiance of central bank's bid to lower persistently elevated price growth in a weakening investment scenario.
The overall inflation stood at 8.49 per cent last month, edging up from 8.29 per cent in November last, according to BBS count.
The Bangladesh Bureau of Statistics released Monday its statistics that show inflation on account of both food and nonfood prices accelerated during the month under review. The food inflation was recorded at 7.71 per cent while non-food inflation at 9.13 per cent.
Price pressures intensified across region in the past month, after some respite.
In urban areas, inflation rose to 8.55 per cent or up by 0.16-percentage points than November last.
On the other hand, the inflation in rural areas rose more sharply to 8.48 per cent or up by 0.22-percentage points over November.
However, on a longer-term basis, the inflationary momentum showed signs of easing.
A 12-month moving average, or another analysis tool in economics, shows this is 8.77 per cent in December against its comparable figure of 10.34.
Economists say some key commodities' prices were up during December. Onion, soybean oil and rice prices come into mention as the hikers. They, however, say the inflation rate might ease in January as many winter vegetables started cooling the mercury down.
Dr Md. Ejzul Islam, director-general at the Bangladesh Institute of Bank Management or BIBM, says the prices of some key kitchen items were elevated, including retail prices of onions.
"Despite tighter monetary policy, inflation remained elevated," he notes, pointing to the need for closer monitoring of its supply-side constraints and agricultural production.
He says the industrial sector has been under pressure due to weak exports.
"Such high inflation will hit hard industrial workers at a time when surplus workers prevail in the market," says Dr Islam.
Dr Zahid Hussain, an independent economist, says the core inflation had risen less sharply than food inflation.
"The drivers of food inflation are not to explain as there are some structural bottlenecks in distribution and production."
He hints that the central bank might think of more tightening of measures once it remains further high as the real income continued to erode amid weak investment and job growth.
The BBS compiles the data by taking primary data from 154 markets across the country.
Jasimharoon@yahoo.com