Inflation at 10-month low in August

In July, overall inflation was 8.32 percent. In one month, it fell by 0.06 percentage points. Earlier, inflation was 9.16 percent in June and 9.42 percent in May. From its peak in May, it has fallen by 1.16 percentage points in three months.

According to BBS data, food inflation also fell to 7.02 percent in August, which was 7.16 percent in July. In August last year, food inflation was 7.60 percent.

Inflation fell in both rural and urban areas. In August, overall inflation in rural areas was 8.31 percent, which was 8.36 percent in July. In urban areas, it fell to 8.20 percent in August from 8.24 percent in July.

Those concerned say that improved supply conditions of goods in the market and various policy initiatives of the government are playing a role in reducing price pressure. In the budget for fiscal year 2026-27, reducing tax at source on 60 essential commodities and expanding the food-friendly programme and OMS operations have also been mentioned.

Meanwhile, TCB's operations are being strengthened to keep the supply and prices of essential commodities stable. The agency said initiatives are being taken to sell some imported essential commodities at relatively low prices in the market without subsidies.

The government has set a target to bring inflation down to 7.5 percent in the current fiscal year. However, lower inflation does not mean the prices of goods have decreased; rather, the pace of price increases has slowed compared to before. As a result, it cannot be said that the pressure on ordinary people's purchasing power has fully eased.