{"id":281094,"date":"2026-02-08T20:17:10","date_gmt":"2026-02-08T20:17:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/281094\/"},"modified":"2026-02-08T20:17:10","modified_gmt":"2026-02-08T20:17:10","slug":"inflation-on-rise-whats-behind-the-surge","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/281094\/","title":{"rendered":"Inflation on rise: What&#8217;s behind the surge"},"content":{"rendered":"<p>      Experts point to food prices, supply issues, and election spending    <\/p>\n<p>\n                    TBS Report\n          <\/p>\n<p>\n      08 February, 2026, 07:15 pm    <\/p>\n<p>\n      Last modified: 08 February, 2026, 07:27 pm    <\/p>\n<p>\n      Illustration: TBS<\/p>\n<p>&#8220;&gt; <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"adf-overlay ratio ratio__16x9 lazyload\" data-aspectratio=\"451\/254\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/inflation_0.png\" width=\"451\" height=\"254\" alt=\"Illustration: TBS\" title=\"\"\/><\/p>\n<p>\n          Illustration: TBS        <\/p>\n<p class=\"rtejustify\">Highlights:<\/p>\n<p>Rising food prices drive most of the increase, experts say<br \/>\nHousing, gas, and recreation see modest price rises<br \/>\nJanuary LPG and gas crisis adds to costs<br \/>\nElection spending fuels higher consumer demand<br \/>\nWeak market management limits impact of monetary policy<br \/>\nExperts call for structural reforms, production, and jobs<\/p>\n<p class=\"rtejustify\">Bangladesh has been witnessing a noticeable uptick in inflation, prompting questions about its causes and potential policy responses.\u00a0<\/p>\n<p class=\"rtejustify\">Inflation went up for the third month in a row in January, with prices climbing to their highest level in eight months since May last year.<\/p>\n<p>        <a style=\"font-weight: bold; color: #2b4949; border-bottom: 1px solid #ccc; font-size: 18px;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMIivlQsw2ZKrAw?ceid=US:en&amp;oc=3\" rel=\"nofollow noopener\" target=\"_blank\"><br \/>\n          <img decoding=\"async\" src=\"https:\/\/www.tbsnews.net\/sites\/all\/themes\/sloth\/images\/google_news.svg\" alt=\"The Business Standard Google News\" style=\"display: inline-block; margin-right: 15px; margin-bottom: 10px; height: 30px;\"\/><br \/>\n            Keep updated, follow The Business Standard&#8217;s Google news channel<br \/>\n          <\/a><\/p>\n<p class=\"rtejustify\">The overall inflation rate rose to 8.58% in January, up from 8.49% in December, 8.29% in November and 8.17% in September, according to data released by the Bangladesh Bureau of Statistics (BBS) today (8 February).<\/p>\n<p class=\"rtejustify\">Experts opined that the surge is primarily driven by rising food prices, structural market inefficiencies, and increased cash flow ahead of elections.<\/p>\n<p><a href=\"https:\/\/www.tbsnews.net\/economy\/january-inflation-hits-8-month-high-polls-spending-seen-key-driver-1355031\" class=\"also-read\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"ratio ratio__16x9 lazyload\" data-aspectratio=\"451\/254\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/12\/1766628013_93_taka_2.png\" width=\"451\" height=\"254\" alt=\"\" title=\"\"\/><br \/>\n<\/a><\/p>\n<p class=\"rtejustify\">Former World Bank Dhaka Office lead economist Dr Zahid Hussain explained that the recent rise in overall inflation is largely due to food inflation, while non-food prices have remained relatively stable overall.\u00a0<\/p>\n<p class=\"rtejustify\">&#8220;Some sub-sectors of the non-food category \u2013 including housing, gas, recreation and culture, and miscellaneous items \u2013 have seen higher-than-average price increases, contributing modestly to overall inflation,&#8221; he said.<\/p>\n<p>Dr Zahid Hussain is the former lead economist at the World Bank Dhaka Office. Photo: TBS<\/p>\n<p>&#8220;&gt; <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload\" data-aspectratio=\"451\/254\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/1770581829_481_zahid_hussain.jpg\" width=\"451\" height=\"254\" alt=\"Dr Zahid Hussain is the former lead economist at the World Bank Dhaka Office. Photo: TBS\" title=\"\"\/><\/p>\n<p>Dr Zahid Hussain is the former lead economist at the World Bank Dhaka Office. Photo: TBS<\/p>\n<p class=\"rtejustify\">The economist noted that inflationary pressures are emerging from both supply and demand factors.\u00a0<\/p>\n<p class=\"rtejustify\">&#8220;On the supply side, the LPG and gas crisis in January raised costs in other energy-dependent sectors. On the demand side, election-related spending has injected additional cash into the economy, boosting consumer expenditure and further straining prices,&#8221; he said.<\/p>\n<p><a href=\"https:\/\/www.tbsnews.net\/features\/panorama\/inflation-not-merely-monetary-phenomenon-political-outcome-adviser-fouzul-kabir\" class=\"also-read\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"ratio ratio__16x9 lazyload\" data-aspectratio=\"452\/254\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/whatsapp_image_2026-01-26_at_4.12.30_pm.jpeg\" width=\"452\" height=\"254\" alt=\"\" title=\"\"\/><br \/>\n<\/a><\/p>\n<p class=\"rtejustify\">Zahid Hussain added that, with a relatively stable exchange rate and no abnormal rise in government spending, the data suggests Bangladesh Bank&#8217;s current policy rate should remain unchanged, while continuing efforts to maintain exchange rate stability.<\/p>\n<p class=\"rtejustify\">Mustafa K Mujeri, executive director at the Institute for Inclusive Finance and Development (InM), stated that effective anti-inflation measures have yet to yield visible results.\u00a0<\/p>\n<p>Dr Mustafa Kamal, Executive Director, INM, Illustration: TBS<\/p>\n<p>&#8220;&gt; <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload\" data-aspectratio=\"1400\/788\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/dr_mustafa_k_mujeri.png\" width=\"1400\" height=\"788\" alt=\"Dr Mustafa Kamal, Executive Director, INM, Illustration: TBS\" title=\"\"\/><\/p>\n<p>Dr Mustafa Kamal, Executive Director, INM, Illustration: TBS<\/p>\n<p class=\"rtejustify\">&#8220;With elections approaching, cash flow in the economy has increased through government spending, campaign expenses, and remittances,&#8221; he said, adding, &#8220;This has pushed up consumption, particularly for food items, while the supply chain, market management, and product marketing structures have not improved significantly.&#8221;<\/p>\n<p><a href=\"https:\/\/www.tbsnews.net\/analysis\/inflation-and-monetary-policy-which-way-1257541\" class=\"also-read\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"ratio ratio__16x9 lazyload\" data-aspectratio=\"451\/254\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/lead.png\" width=\"451\" height=\"254\" alt=\"\" title=\"\"\/><br \/>\n<\/a><\/p>\n<p class=\"rtejustify\">Mujeri warned that Ramadan could further exacerbate food price hikes.\u00a0<\/p>\n<p class=\"rtejustify\">He added that while some duties and taxes have been reduced, their impact on prices has been minimal due to weak market management and supply chain inefficiencies.\u00a0<\/p>\n<p class=\"rtejustify\">Farmers often receive prices below production costs, while consumer prices remain high \u2013 a structural problem that monetary policy alone cannot solve, said the economist.<\/p>\n<p class=\"rtejustify\">&#8220;Even with tightened monetary policy and higher interest rates, inflation cannot be fully controlled without reforms in market management, supply chains, import regulation, and competition,&#8221; Mujeri said.<\/p>\n<p class=\"rtejustify\">He opined that the new government will need to focus on market management, boosting production and investment, and creating employment to ease inflationary pressures.\u00a0<\/p>\n<p class=\"rtejustify\">Without these measures, he thinks rising food prices and falling real incomes could further burden ordinary citizens.<\/p>\n","protected":false},"excerpt":{"rendered":"Experts point to food prices, supply issues, and election spending TBS Report 08 February, 2026, 07:15 pm Last&hellip;\n","protected":false},"author":2,"featured_media":281095,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":{"0":"post-281094","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-il","11":"tag-israel"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/281094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=281094"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/281094\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/281095"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=281094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=281094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=281094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}