Inflation in Bangladesh fell to 10.49% in August, a decline from 11.66% in July, according to data released by the Bangladesh Bureau of Statistics (BBS).
The easing of inflation was largely attributed to a significant drop in food inflation to 11.36% in August, from 14.10% in July, said BBS data released on Sunday (8 September).
However, non-food inflation saw a marginal increase, rising to 9.74% from July's figure of 9.68%, as reported by the state-run statistical agency.
Analysing the regional data, the report revealed that the rural areas faced 10.95% inflation in August this year significantly lower than July’s rural inflation of 11.89%.
Inflation in urban areas also dropped in August to 10.01%, which was 11.27% in July.
The report revealed that the point-to-point inflation in June of the current year was 9.72%, and it surged to double digits in the first two months of the current fiscal year.
The moving average inflation over the last 12 months also increased to 9.95%, the highest in the last decade.
The BBS compiles point-to-point inflation each month in both rural and urban areas, using the prices of food and non-food commodities to measure the cost of living.
An inflation rate of 10.49% in August indicates that a basket of commodities costing Tk100 in August of last year now costs Tk110.49.
People with fixed incomes have to purchase 10.49% less worth of commodities to maintain their livelihood due to inflation. However, the BBS report also revealed that wages for unskilled workers experienced slight growth during the same period, with the wage rate index rising from 7.93% in July to 7.96% in August.
Experts and economists noted that the 2.53 percentage points slower growth in wages compared with inflation has reduced the purchasing power and real income of wage earners.
