---

Inflation in Bangladesh edged down in March, offering slight relief to consumers as food prices softened, though rising energy costs continued to fuel non-food inflation.

According to data from the Bangladesh Bureau of Statistics (BBS), headline inflation fell to 8.71 per cent in March, down from the previous month, based on the consumer price index (CPI).

The decline was largely driven by easing food prices. National food inflation dropped to 8.24 per cent, with both rural and urban areas experiencing moderation. Rural food inflation fell to 8.02 per cent, while urban food inflation declined to 8.78 per cent.

However, non-food inflation moved in the opposite direction, rising to 9.09 per cent amid higher fuel, transport and service costs. In rural areas, non-food inflation climbed to 9.38 per cent, while urban core inflation—which excludes food—edged up to 8.62 per cent.

The 12-month average inflation also eased slightly to 8.60 per cent.

Economists warn that the recent relief may be short-lived. Escalating energy prices, driven by geopolitical tensions in the Middle East, are already feeding into domestic costs.

“Food-security risks linked to rising input costs could push inflation higher,” said an economist, pointing to increased prices of fuel and fertilisers.

Another economist noted that higher energy costs tend to spread across the economy. “They raise the price of a wide range of goods and services, adding to overall inflationary pressure,” he said.

Policy responses, experts say, will be crucial. Measures such as subsidies or tax adjustments could cushion consumers but may require tighter monetary policy, while allowing prices to adjust freely could slow growth.

“Monetary policy should look through temporary supply shocks, as its effects work with a lag,” said a central bank official, indicating that a cautious stance is likely to continue.