Annual inflation in Bangladesh edged higher to 8.58% in January 2026, up from 8.49% in December, marking its highest level since May as renewed pressure from food and housing costs offset easing in several other categories.
Food and housing drive the uptick
Price pressures intensified in food and non-alcoholic beverages, where inflation climbed to 8.29% from 7.71%, reflecting cost pressures across staples. Housing and utilities also accelerated to 8.48% from 7.97%, adding to the overall rise. Inflation picked up as well in recreation and culture (8.64% vs 8.41%) and miscellaneous goods and services, which surged to 21.06% from 19.7%, remaining the most inflationary segment.
Relief in transport, clothing, and tobacco
Several categories saw moderation. Transport inflation cooled to 6.55% from 7.28%, while prices eased for alcoholic beverages, tobacco and narcotics (8.4% vs 12.14%), clothing and footwear (11% vs 12.11%), and furnishings and household maintenance (6.6% vs 7.56%). Smaller pullbacks were also recorded in health, communication, education, and restaurants and hotels.
Monthly prices rebound
On a month-on-month basis, consumer prices rose 0.23%, reversing a 0.84% decline in December, signalling renewed short-term momentum after the prior dip.
What it means
The January reading underscores persistent underlying inflation, with food and housing acting as key pressure points even as transport and discretionary categories soften. The mixed trend suggests headline inflation may remain elevated in the near term, hinging on food prices and utility costs.
