Inflation Climbs to 9.04% in April on War Impact

Inflation in Bangladesh rose to 9.04% in April, reflecting mounting global pressures linked to the United States-Israel attack on Iran and the wider conflict in the Middle East.

The latest figure marks an increase from 8.71% recorded in March, though slightly below the 9.17% seen in April last year, according to data released on 6 May by the Bangladesh Bureau of Statistics.

Food inflation edged up to 8.39% in April from 8.24% a month earlier, while non-food inflation climbed more sharply to 9.57%, compared to 9.09% in March. A year ago, food inflation stood at 8.63% and non-food inflation at 9.61%.

Economists say the ongoing geopolitical tensions are feeding into domestic price pressures through higher fuel, transport and import costs. Production in Bangladesh has yet to fully recover its pace, even as businesses face rising expenses across the supply chain.

Higher fuel prices have added to the strain, pushing up transportation costs and affecting everything from manufacturing to market distribution. Increased import bills are also driving up production costs, creating sustained upward pressure on prices.

Current trends suggest inflation may remain elevated in the coming months. Despite tighter monetary policies over the past two years, their impact has been limited, largely because inflation is being driven by supply-side factors such as energy costs and global market volatility.

There are also concerns that a potential increase in electricity prices could further intensify inflation. At the same time, climate-related risks, including hailstorms and possible flooding, may disrupt agricultural output and supply chains, adding to price instability.

Global uncertainty continues to weigh heavily, particularly in energy and food markets. Ongoing geopolitical tensions and fragile supply chains make a quick easing of inflation unlikely.

Low-income households are bearing the brunt of the situation. Wage growth has not kept pace with rising prices in recent years, eroding purchasing power and making it increasingly difficult for many families to manage daily expenses.

Given these challenges, economists stress the need to expand social safety net programmes. Strengthening food assistance, cash support and other targeted measures is seen as essential to protect vulnerable groups.

They also highlight the importance of boosting employment, encouraging investment and restarting idle industrial units. Ensuring food security for low-income populations is expected to be a key priority in the upcoming national budget.