Domestic factors account for 74% of inflation: BB

Domestic products were the primary drivers of inflation in Bangladesh, accounting for 74 percent of the overall inflation in September 2024.
Domestic items contributed 61 percent to inflation in June, highlighting the growing impact of local factors, as per the data from the central bank’s quarterly report, titled “Inflation Dynamics in Bangladesh”, which explores inflation trends and wage dynamics.
By comparison, the contribution of import-dependent items to inflation fell to 26 percent in September, down from 39 percent in June.
The year-on-year consumer price index (CPI) inflation surged to 10.7 percent in the first quarter (July-September) of the current fiscal year.
July recorded a 12-year high inflation rate of 11.7 percent, and inflation remained elevated at 9.9 percent in September compared to 9.6 percent in the same month last year.
Persistent inflation was driven by high commodity and energy prices along with currency depreciation.
Food inflation peaked at 14.1 percent in July, the highest in 13 years, before falling to 11.4 percent in August and 10.4 percent in September.
Non-food inflation increased modestly, averaging 9.6 percent in Q1 of FY25, up from the previous quarter.
More than half of the headline inflation during this period came from food prices, while energy inflation’s contribution declined.
Cereals, vegetables and protein-based items were key contributors to food inflation, according to the report.
Non-food inflation also saw a rise, with housing, health and personal care expenses adding significant pressure.