Bangladesh's inflation rate increased in May after two months of relative stability, with rising food costs emerging as the main driver behind higher consumer prices, according to the latest figures released by the Bangladesh Bureau of Statistics (BBS).
Point-to-point inflation climbed to 9.42 per cent in May 2026, up from 9.04 per cent in April and slightly above the 9.05 per cent recorded in the same month last year. The increase was largely attributed to a sharp rise in food inflation, which reached 9.06 per cent in May compared with 8.39 per cent a month earlier.
Non-food inflation also moved upward, rising to 9.71 per cent from 9.57 per cent in April, indicating that price pressures remained widespread across the economy.
The BBS data showed inflationary pressures intensified in both rural and urban areas. Rural inflation rose to 9.48 per cent in May from 9.05 per cent in April, driven by higher food and non-food prices. Food inflation in rural areas climbed to 8.95 per cent, while non-food inflation increased to 9.98 per cent.
Urban consumers also faced higher living costs, with overall inflation reaching 9.25 per cent in May compared with 9.02 per cent in April. Urban food inflation rose to 9.29 per cent, while non-food inflation increased to 9.24 per cent.
Despite the month-on-month rise, longer-term inflation indicators showed signs of improvement. The 12-month moving average inflation rate declined to 8.63 per cent during the June 2025-May 2026 period, down from 10.13 per cent in the corresponding period a year earlier. The reduction suggests that overall inflationary pressures have eased compared with previous years, even though prices remain elevated on a monthly basis.
The report also highlighted a continuing gap between wage growth and inflation. The national wage rate increased by 8.21 per cent in May, slightly higher than the 8.16 per cent recorded in April. Growth rates stood at 8.22 per cent in agriculture, 8.15 per cent in industry and 8.36 per cent in the services sector.
However, wage growth remained below the overall inflation rate, indicating that many households continue to experience declining purchasing power as living costs rise faster than incomes.
The Consumer Price Index for May was compiled using data collected from 154 markets across all 64 districts, while the Wage Rate Index was prepared using information gathered nationwide. Economists say the latest figures underscore the challenge policymakers face in containing food inflation while protecting household purchasing power and sustaining economic stability.
