Bangladesh’s economy showed tentative signs of relief at the end of the 2024–25 fiscal year, with inflation easing and third-quarter GDP growth slightly improving, according to official data released Monday by the Bangladesh Bureau of Statistics (BBS).

The 12-month average inflation stood at 10.03%, slightly higher than the previous fiscal’s 10.00% and significantly above FY2023’s 9.02%.

However, point-to-point inflation dropped to 8.48% in June, down from 9.05% in May and marking the lowest monthly rate in 35 months.

Inflation peaked at 11.38% in November 2024 and had remained stubbornly high until this recent fall, attributed by officials to a “cautious approach and prudent monetary policy” adopted by the interim government.

Stabilized food prices were cited as a key factor, with food inflation falling to 7.39% in June from 8.59% in May. Non-food inflation also declined slightly to 9.37%.

Urban inflation remained higher than rural, recorded at 8.94% in cities versus 8.46% in rural areas.

Meanwhile, GDP growth in the third quarter of FY2025 edged up to 4.86%, compared to 1.96% in Q1 and 4.48% in Q2, indicating a modest recovery. The previous year’s Q3 growth was 4.62%.

The government now targets an average inflation rate of 9.0% in FY2026, with a longer-term goal of reducing it to 6.5% under the interim administration’s new budget.