May Records Highest Inflation in Sixteen Months

Bangladesh has recorded its highest inflation in the past sixteen months in May 2026. According to the latest data released by the Bangladesh Bureau of Statistics (BBS) on Sunday, consumer price inflation rose to 9.42 per cent in May, the highest since February 2025. Notably, inflation has remained above 9 per cent for two consecutive months.

Experts attribute the increase primarily to recent rises in fuel prices, which have escalated the cost of living for low- and middle-income households. Rising energy costs have a direct effect on transportation and production expenses, which in turn push up consumer goods prices.

Fuel Price Adjustments

The government implemented two rounds of fuel price hikes in April and May. On 19 April, the following adjustments were made:

A subsequent adjustment on 31 May had limited effect on the May inflation calculation. Additionally, electricity tariffs were increased last week, which is expected to put further upward pressure on inflation in June.

Inflation by Category

BBS data shows that in May:

• Food inflation: 9.06%
• Non-food inflation: 9.71%

Inflation remains consistently above 9 per cent across both urban and rural areas.

Impact on Households

Rising inflation disproportionately affects households with limited or moderate incomes. With wages not increasing at the same rate as inflation, purchasing power declines, forcing households to either incur debt or reduce spending on essentials such as food, clothing, and transportation.

According to BBS, the national average wage growth for May was 8.21 per cent, which is below the current rate of inflation. As a result, consumers face increased difficulty in meeting daily expenses. Essential items such as vegetables, fish, meat, and staple grains like rice have seen price increases of 2–3 BDT per kilogram.

In summary, the convergence of higher fuel and electricity costs, alongside wage growth lagging behind inflation, is creating a tangible strain on household budgets across Bangladesh. Continuous monitoring and policy measures are expected to be necessary to stabilise prices in the coming months.

This data underscores the widening gap between income growth and consumer price escalation, highlighting the ongoing economic challenges for ordinary households.