Vegetables, fish push headline inflation to 8.58% in Jan 2026: GED
Fish and dry fish remained the highest contributors to food inflation, though their combined share declined slightly to 32.27% from 43.34%.
Inflationary pressures in Bangladesh persisted in January as rising costs of vegetables, fish, and fruits offset the relief from easing rice prices, according to the latest Economic Update from the General Economics Division (GED) of the Planning Commission.
Headline inflation edged up to 8.58% in January this year, compared to 8.49% in December 2025.
While non-food inflation moderated to 8.81%, food inflation accelerated to 8.29%, remaining the primary driver of the cost of living.
Keep updated, follow The Business Standard's Google news channel
Food items accounted for 43.06% of the whole headline inflation during the month, up from 40% in December.
Additionally, the GED report highlighted a significant shift in food price dynamics.
Overall rice inflation saw a sharp decline to 7.61% from 11.92% in December, with prices of coarse, medium, and fine rice all moderating.
Eroding purchasing power
However, this downward trend was reversed by a spike in vegetable prices, which shifted from a negative contribution (-20.33%) in December to a positive 8.40% in January.
Fish and dry fish remained the highest contributors to food inflation, though their combined share declined slightly to 32.27% from 43.34%.
While contributions from liquid milk and soybean oil softened, onion posted a marginal negative contribution, and potato remained negative though less sharply than in December, certain protein items like pangash continued to exert price pressure.
The GED attributed the rise in vegetable costs, despite a good harvest, largely to higher transportation expenses and excessive profit-taking by middlemen.
The report also raised alarms over eroding purchasing power, as wage growth continues to trail inflation.
In January, wage growth stood at 8.08%, failing to keep pace with the 8.58% inflation rate. This gap has persisted since September 2025, disproportionately affecting lower-income groups who spend the bulk of their earnings on essential goods.
New govt's ability
The GED emphasised the need for coordinated wage and price management policies to stabilise real incomes.
Despite these hurdles, the GED expressed optimism regarding the new government's ability to restore macroeconomic stability.
The division identified three immediate priorities:
- Attracting higher investment
- Generating employment
- Reining in inflation
The General Economics Division also highlighted the planned "Family Card" initiative as a potentially transformative step toward universal social protection, aimed at supporting marginalised groups while reducing leakages in existing social safety net programmes.
The report concluded that consistent policy direction, and improved governance will be essential to rebuilding investor trust and placing the economy on a more sustainable growth trajectory.
