Bangladesh’s inflation rate saw a modest decline in August, dropping by over one percentage point to 10.49%.

This relief to the country’s low-income population, which has long struggled with rising prices, was reflected in the monthly data released on Sunday by the Bangladesh Bureau of Statistics (BBS).

A significant reduction in food prices largely drove the decline in inflation. Food inflation fell to 11.36% in August, marking a substantial decrease of 2.74 percentage points from the previous month. However, non-food inflation slightly increased, rising from 9.68% in July to 9.74% in August.

Despite the improvement in overall inflation, the 12-month moving average remained elevated at 9.95%, compared to 9.24% in the same period last year.

The most significant drop was observed in urban areas, where inflation fell by 1.26 percentage points to 10.01%. In rural areas, the inflation rate decreased, though more modestly, from 11.9% to 10.95%.