The country's food inflation rate soared to an all-time high of 14.10% in July, driven by the student protests demanding the abolition of quotas in government jobs.
The unrest led to widespread disruption, virtually isolating Dhaka from the rest of the country and halting the supply of goods.
This unprecedented spike in food prices marks the highest inflation rate in the nation's history. According to the Bangladesh Bureau of Statistics (BBS), food inflation had already climbed to 12.54% in August 2023, the highest in 12 years, surpassing the previous peak of 12.82% in October 2011.
On Monday (August 12), the BBS released updated Consumer Price Index (CPI) data for July, revealing that the cost of essential food items such as rice, pulses, oil, salt, fish, meat, vegetables, spices, and tobacco surged significantly. In June, food inflation was recorded at 10.42%.
The inflationary pressure extended beyond food, affecting housing, furniture, household goods, medical services, transport, and educational materials. In July, inflation in these sectors rose to 9.68%, up from 9.15% in June.
Overall, headline inflation jumped to 11.66% in July, compared to 9.72% in the previous month, reflecting the broad economic impact of the ongoing agitation.