In April, Bangladesh reported a marginal decline in its overall inflation rate to 9.74%, down from 9.81% in March. However, the increase in food inflation to 10.22% from 9.87% highlights a continued financial strain on household budgets, particularly for low-income families.

Ahsan H. Mansur, a former senior economist at the IMF, expressed concerns about the rising cost of essentials. “This disproportionately affects low-income families, who allocate a significant portion of their income to food. The rising cost of essentials threatens to derail our economic progress,” Mansur stated.

The government has implemented contractionary monetary policies to tackle inflation, but the effectiveness of these measures is still under observation. Mansur added that frequent policy changes by Bangladesh Bank have also impacted the results, occasionally exacerbating inflation pressures.

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He also raised questions about the accuracy of inflation data. There's a discrepancy between the market prices of goods and the reported rate of inflation, which raises concerns about the data’s reliability, he explained.

Variations in inflation rates: A closer look

The data reveals a mixed picture across different areas. In rural areas, overall inflation increased to 9.92% in April, up from 9.68% in March. Food inflation in these areas rose slightly higher to 10.25%, compared to 9.86% in March. Non-food inflation also saw a rise, reaching 9.60% in April from 9.41% the previous month.

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Conversely, urban areas experienced a slight relief in overall inflation, which decreased to 9.46% in April from 9.94% in March. While food inflation in urban areas rose to 10.19% from 9.98%, non-food inflation saw a significant reduction, dropping to 9.01% from 9.71%, according to BBS report.