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Inflation hits 16-month high as food, fuel costs squeeze households
Daily Sun Report, Dhaka
Published: 08 Jun 2026, 12:00 AM
Bangladesh's inflation climbed to a 16-month peak in May, with rising prices across both food and non-food categories deepening cost-of-living pressures on ordinary households.
Data released by the Bangladesh Bureau of Statistics (BBS) on Sunday put point-to-point inflation at 9.42% last month, up from 9.04% in April and above the 9.05% recorded in May last year. The reading is the highest since January 2025, when inflation stood at 9.94%, and marks the second consecutive month that the overall rate has held above 9%.
Food inflation rose sharply to 9.06% in May from 8.39% in April, exceeding the 8.59% reported in the same month a year earlier.
Non-food inflation also edged higher, reaching 9.71% against 9.57% in April and 9.42% in May 2025, pointing to broadening price pressures across transport, housing, healthcare and education.
The trend through 2026 has been uneven but persistently elevated. After easing to 8.58% in January, inflation rose to 9.13% in February before pulling back to 8.71% in March. It then resumed its climb in April and accelerated further last month.
Adding to household strain, the national average wage growth stood at just 8.21% in May – well short of the 9.42% inflation rate.
BBS figures show wage growth has now trailed inflation for 52 consecutive months since February 2022, steadily eroding the purchasing power of low- and middle-income families.
Economists and market observers link part of the recent price surge to the government's fuel price revision on 19 April, which raised diesel from Tk100 to Tk115 per litre, kerosene from Tk112 to Tk130, octane from Tk120 to Tk140, and petrol from Tk116 to Tk135.
The increases pushed up transportation and production costs, feeding through to higher retail prices for vegetables, rice, fish and meat.
A further fuel price adjustment on 31 May fell outside the reference period for the latest BBS data. Analysts warn that its impact, compounded by recent electricity tariff increases, is likely to keep inflationary pressure elevated into June.