Inflation declines to 8.71% in March

Bangladesh’s headline inflation eased to 8.71 percent in March, down from 9.13 percent in February, according to the Bangladesh Bureau of Statistics (BBS).

The drop was driven largely by food prices. Food inflation fell to 8.24 percent last month from 9.30 percent in February, according to BBS data released today.

In contrast, non-food inflation edged up to 9.09 percent in March from 9.01 percent in February.

Inflation in rural areas stood at 8.72 percent in March. In cities, it was slightly lower at 8.68 percent.

The moderation comes a month after overall inflation climbed to 9.13 percent, its highest level in ten months.

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Inflation to ease in coming months: BB

In February, economists said higher food prices ahead of Ramadan and increased election-related spending fuelled demand, pushing the Consumer Price Index above 9 percent for the first time since May last year.

The country has been struggling with stubborn inflation for more than three years.

The burden falls hardest on the poor and low-income households, who spend a large share of their earnings on food and have the least capacity to absorb price shocks.