Food inflation hits 13-month high in February

Food inflation in Bangladesh rose sharply to 9.30% in February – the highest level since January 2025, when food inflation stood at 10.72%. – as prices of essential items gathered pace again, according to data released on Sunday by the Bangladesh Bureau of Statistics (BBS).
The figure, up from 8.29% in January, suggests the relative easing in food prices seen through much of last year may be fading.
Economist Mustafa K Mujeri, former chief economist at the central bank, said rising food costs had been a key factor behind the overall increase in inflation.
“Food inflation is once again driving the overall inflationary pressure,” he said, pointing to higher prices for staple goods and ongoing supply chain constraints.
Overall inflation also rises
The rise in food prices has pushed overall inflation higher.
General inflation climbed to 9.13% in February, up from 8.58% in January, according to the BBS consumer price index.
This is the highest in 10 months since April 2025, when the inflation rate was 9.17%.
Non-food inflation also edged up, reaching 9.01%, compared with 8.81% a month earlier, reflecting continuing price pressures in sectors such as housing, transport and utilities.
In neighbourhood markets across major cities, the cost of staple items, including rice, lentils, edible oil, vegetables, chicken and fish, remains elevated, limiting purchasing power for many low- and middle-income families.
Economic slowdown adds to concerns
The inflationary pressure comes at a time

when the broader economy is showing signs of slowing. BBS figures indicate that GDP growth fell to 3.49% in the 2025 fiscal year, the lowest level since the Covid-19 pandemic.

Meanwhile, the investment-to-GDP ratio declined to around 28.54%, raising concerns about job creation in an economy where an estimated two to 2.2 million people enter the labour market each year. Economists warn that without stronger investment and employment growth, income recovery will remain slow, prolonging financial pressure on households.
Debate over taxation and policy response
The rising cost of living has also fuelled debate over fiscal policy. Finance Minister Amir Khasru Mahmud Chowdhury has recently stressed the need to increase government revenue and encourage investment to support economic recovery.
However, economists caution that raising taxes during a period of high inflation could further burden consumers if businesses pass on higher costs through increased prices. Bangladesh’s tax-to-GDP ratio, at around 7%, remains one of the lowest in South Asia. Analysts say improving tax compliance and broadening the tax base may be more effective than raising tax rates.

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