Bangladesh’s annual inflation rate eased to 8.32% in July 2026 from 9.16% in June, reaching its lowest level since November 2025. The slowdown was driven primarily by softer price increases in several key categories, including food and non-alcoholic beverages (7.16% vs 8.60% in June), transport (9.34% vs 10.10%), housing and utilities (9.48% vs 9.63%), health (3.90% vs 4.28%), communication (6.90% vs 9.76%), recreation and culture (8.80% vs 9.80%), and education (8.73% vs 9.11%).
In contrast, inflation remained elevated or accelerated in some sectors, particularly restaurants and hotels (12.57% vs 11.70%), clothing and footwear (9.75% vs 9.64%), and furnishings, household equipment, and routine household maintenance (6.58% vs 6.43%).
On a monthly basis, consumer prices rose by 1.44% in July, up sharply from 0.34% in June and marking the strongest month-on-month increase since October 2025. Despite the recent moderation in the annual inflation rate, Bangladesh remains highly exposed to disruptions stemming from the Middle East conflict, given its heavy dependence on imported fuel and its limited foreign reserve buffers.
