Inflation in Bangladesh has fallen below 10% for the first time in months, easing pressure on households and stabilizing prices in markets across the capital, Dhaka.
Chief Adviser Muhammad Yunus, 84, of Dhaka, has led an interim government since the departure of former Prime Minister Sheikh Hasina following a mass uprising last year. His administration has pushed through economic reforms credited with averting a liquidity crisis, steadying foreign reserves and boosting confidence in the banking sector.
The easing of inflation has been particularly welcomed in food markets, where prices for staple items such as onions, potatoes and eggs have dropped significantly since last year. Officials forecast inflation could decline further to between 7% and 8% by June.
The Bangladesh Bank, the country’s central bank, cited a combination of tight monetary policy, restructured banking governance and a record $26.9 billion in remittances in 2024 as key factors behind the stabilization. The country’s currency has remained steady, and the apparel industry — which accounts for more than 80% of total exports — has shown resilience despite earlier concerns about unrest.
While Yunus’ supporters describe the economic turnaround as a “miracle,” economists warn that challenges remain. Experts cite weak law enforcement, high interest rates, energy concerns and political uncertainty as barriers to long-term recovery. Foreign investment and stock market performance have also declined.
Despite these concerns, many in Dhaka say the drop in food prices has already made a tangible difference in their daily lives.