Bangladesh’s inflation rose to 8.34% in September, its highest level since June, reviving cost worries for a garment industry that earned $10.58 billion in exports last quarter and anchors the economy.
Point-to-point inflation climbed from 8.26% in August, the Bangladesh Bureau of Statistics said on Oct. 7, ending a two-month decline. Food inflation rose to 7.22% while non-food inflation held at 9.30%. Housing and utilities inflation accelerated to 9.81% from 9.44%, transport to 9.46%, and clothing and footwear to 10.31%, according to Trading Economics. Monthly prices rose 1.12%, slowing from 2.31% in August. Read Here
Zahid Hussain, a former World Bank lead economist in Dhaka, blamed the rise on a fuel price increase of 20 taka per litre on Sept. 20 and expects no easing over the next one or two months. Trading Economics notes Bangladesh remains vulnerable to Middle East disruption because it relies heavily on imported fuel and holds limited reserves. A projection circulated by Markedium puts 2026 inflation at 8.7%, the region’s highest.
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Manufacturers feel the pressure through inputs, utilities and logistics. Nikkei Asia reported in April that petroleum-based input costs had risen 10% to 15% after the Iran war, while buyers resisted paying extra on existing orders. Bangladesh Garment Manufacturers and Exporters Association President Mahmud Hasan Khan warned factories cannot meet deadlines without uninterrupted gas and electricity.
Shipments have so far held up. Ready-made garment earnings grew 6.10% to $10.578 billion in July-September, the Export Promotion Bureau said, with exports to the United States rising 10.40% to $2.22 billion.
Analysts say persistent price growth could sharpen worker demands for higher pay while thinning factory margins, a squeeze that would test exporters if international buyers keep prices flat. Dhaka’s ability to stabilise fuel and energy costs may decide whether export momentum survives the inflation spike.