Attachments
Key Messages
Inflation: The general inflation has been following a steady declining trend since December 2024, with a little exception in February 2025. The general inflation rate eased slightly in May 2025 and reached 9.05 percent, down from 9.17 percent in the previous month, driven by a moderate but positive decline in both food and non-food inflation. Food inflation in May decreased to 8.59 percent compared to 8.63 percent in the previous month. Non-food inflation also decreased to 9.42 percent this month, down from 9.61 percent in April, indicating a slight fall in the costs of daily living. Experts have attributed the easing of inflation to a combination of supply-side and demand-side measures taken by the government. Rural food inflation reduced slightly from the previous month hitting 8.3 percent, while that of urban increased to 9.3 percent in May 2025.1 Year-on-year, food inflation reduced by 2.2 percentage points, and non-food inflation increased by 0.3 percentage points.
Bangladesh Economy: The country's gross foreign exchange reserve showed a sharp fall to USD 25.8 billion in May 20252, driven by reduced export earnings and clearing due payments. The reserve was about 6 percent lower month-on-month. The official exchange rate has been stable at BDT 122 for the last five months (selling rates).3 Bangladesh has received USD 2.97 billion in remittances in May 2025, marking the second-highest monthly inflow in the country's history (after March 2025). Remittance inflow this month reflects a 32 percent surge year-on-year. The rise has been attributed to the stability of the US dollar exchange rate and the upcoming Eid-ul-Adha, coupled with stronger inflows through formal channels and increased overseas employment.
Fuel: The national average price for Liquefied Petroleum Gas (LPG) reduced by BDT 19, reaching BDT 1,431 per 12-kg cylinder (gas-only price) for the month of May 2025. The price of "autogas" (LPG used for motor vehicles) has also been reduced slightly to BDT 65.57, down by BDT 0.84. The Bangladesh Energy Regulatory Commission (BERC) adjusted domestic fuel prices, considering the international prices in major exporting countries like Saudi Arabia. The crude oil prices were reduced in the global markets which has brought ease in fuel prices in the local markets. However, the price also depends on the changes in foreign exchange rates, deviations in USD rates, and the value-added tax (VAT). Similarly, the LPG price decreased in Cox’s Bazar by BDT 33, reaching BDT 1,427 per 12-kg cylinder (negotiated price).
Market Price: In domestic retail markets, the prices of major food items like rice, lentils, potatoes, chicken, fish, green chili, garlic, sugar, and some fresh vegetables had a notable decrease month-on-month in May 2025. On the other hand, prices of eggs and onions increased compared to the previous month, and those of wheat and edible oils remained somewhat stable. A similar price trend was observed in the retail markets of Cox’s Bazar, except that prices increased for lentils, fish and edible oils (price details provided in Annex I and II).
Imports: The country has seen a steady increase in wheat imports in recent years. During the ongoing Fiscal Year up to May, the country has imported 5.5 million mt of wheat, according to the Ministry of Food. This growth may be attributed to lower prices in the global markets, improved supply chain logistics, and higher demand in the local markets. The country imported 1.2 million mt of rice during the ongoing FY to maintain adequate stock and to prevent further hikes in rice prices.5 Rice reserves in the government storage in May 2025 stood at 1.5 million mt. The present public stock is expected to reach a satisfactory level after the upcoming internal Boro rice procurement. To mitigate the risk of food supply shortages and stabilize prices, the government has relaxed the public procurement rules on rice imports.
Cost of Food Basket: The national monthly cost of a food basket6 reduced by BDT 58 in May 2025 from the previous month hitting BDT 2,842 per person per month. This moderate fall was driven by a downward trend in the prices of some fundamental food items like rice, lentils, potatoes, poultry, fish, sugar and fresh vegetables(Figure 1).