Dhaka: Bangladesh saw a sharp rise in inflation in February, mainly driven by increasing food prices and higher spending linked to upcoming elections.
According to data released by the Bangladesh Bureau of Statistics, the country’s overall inflation rate rose to 9.13 percent in February, compared with 8.58 percent in January. This is the highest level in the past 10 months.
Food Prices Lead Inflation Rise
The biggest reason behind the rise in inflation was the increase in food prices. Food inflation climbed to 9.30 percent in February, up from 8.29 percent in January.
Demand for food items increased ahead of the Ramadan festival, which usually leads to higher consumption of essential items such as rice, meat and cooking oil.
At the same time, prices of several non-food items also rose. Non-food inflation increased to 9.01 percent, compared with 8.81 percent in January. Rising costs were seen in areas such as housing, transportation and healthcare.
Inflation Rising for Four Months
This is the fourth consecutive month in which inflation has increased in Bangladesh. The country had earlier seen inflation fall to 8.17 percent in October, which was the lowest level in nearly 39 months.
However, prices have been steadily rising again since then, putting pressure on household budgets.
Election Spending Adds Demand
Economists say political campaign spending has also played a role in pushing prices higher.
Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said campaign activities often include distributing food such as snacks and biryani to attract voters. This additional demand can increase food prices during election periods.
He also pointed out that supply disruptions at ports in February may have increased inflation expectations and encouraged hoarding.
Central Bank Remains Cautious
Bangladesh Bank has maintained a tight monetary policy to control inflation and reduce demand-driven price increases.
Ashikur Rahman, principal economist at the Policy Research Institute, warned that relaxing monetary policy too early could push inflation even higher and affect economic stability.
Trade Reform Concerns
Experts have also warned that Bangladesh could fall behind other economies if it does not reform its trade policies.
Commerce Secretary Mahbubur Rahman said non-tariff barriers are still slowing trade and urged the National Board of Revenue to simplify the country’s trade system to improve competitiveness.
