B Mirror Report: Inflationary pressure in Bangladesh continued in January as higher prices of vegetables, fish and fruits offset the relief created by a decline in rice prices, according to the latest Economic Update published by the General Economics Division (GED) of the Planning Commission.
The report said headline inflation increased slightly to 8.58 percent in January, compared with 8.49 percent in December 2025.
While non-food inflation eased to 8.81 percent, food inflation rose to 8.29 percent, continuing to remain the major driver behind the rising cost of living.
Food items accounted for 43.06 percent of the overall headline inflation in January, up from around 40 percent in the previous month, reflecting stronger pressure from essential commodities.
The GED report also pointed to a notable shift in food price dynamics during the month.
Overall rice inflation dropped sharply to 7.61 percent from 11.92 percent in December, as the prices of coarse, medium and fine rice all moderated.
However, the easing trend in rice prices was largely offset by a surge in vegetable prices. Vegetables shifted from a negative contribution of 20.33 percent in December to a positive 8.40 percent in January.
Fish and dry fish remained the highest contributors to food inflation, although their combined share declined slightly to 32.27 percent from 43.34 percent in the previous month.
At the same time, the contributions from liquid milk and soybean oil softened, while onion registered a marginal negative contribution. Potato prices also stayed in negative territory, though the decline was less sharp than in December. However, certain protein items such as pangash fish continued to exert pressure on prices.
The GED attributed the increase in vegetable prices, despite a favourable harvest, mainly to higher transportation costs and excessive profit-taking by intermediaries.
The report also raised concern over weakening purchasing power, as wage growth continued to lag behind inflation.
In January, wage growth stood at 8.08 percent, failing to match the 8.58 percent inflation rate. This gap has continued since September 2025, disproportionately affecting lower-income groups who spend most of their income on basic necessities.
To address the situation, the GED emphasised the need for coordinated wage and price management policies to stabilise real incomes.
Despite the ongoing challenges, the division expressed optimism about the new government’s ability to restore macroeconomic stability.
The report identified three immediate priorities for the government: attracting greater investment, creating jobs and bringing inflation under control.
It also highlighted the planned “Family Card” initiative as a potentially transformative step toward universal social protection, aimed at supporting marginalized communities while reducing leakages in existing social safety net programmes.
The report concluded that consistent policy direction and stronger governance will be essential to rebuild investor confidence and place the economy on a more sustainable growth path.
