[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Inflation eases further to 8.32pc in July

Bangladesh’s headline inflation fell to 8.32 percent in July 2026 from 9.16 percent in June, mainly driven by a significant decline in food inflation, according to data released by the Bangladesh Bureau of Statistics (BBS). The latest BBS data show that food inflation dropped to 7.16 percent

thefinancialexpress.com.bd

Inflation eases further to 8.32pc in July

Bangladesh’s headline inflation fell to 8.32 percent in July 2026 from 9.16 percent in June, mainly driven by a significant decline in food inflation, according to data released by the Bangladesh Bureau of Statistics (BBS).

The latest BBS data show that food inflation dropped to 7.16 percent in July, from 8.60 percent in June, while non-food inflation eased to 9.28 percent from 9.61 percent during the period.

The July inflation rate was also lower than the 9.42 percent recorded in May 2026, indicating a continued moderation in overall price pressure over the past two months.

On a month-on-month basis, however, the general price index increased by 1.44 percent in July, compared to a 0.34 percent rise in June. Food prices rose by 2.57 percent during the month, while non-food prices increased by 0.53 percent.

The inflation situation was slightly higher in rural areas than in urban areas in July.

Rural inflation stood at 8.36 percent, with food inflation at 7.14 percent and non-food inflation at 9.53 percent.

In urban areas, headline inflation was 8.24 percent, while food and non-food inflation stood at 7.21 percent and 8.90 percent respectively.

The 12-month moving average inflation also declined to 8.66 percent in the period from August 2025 to July 2026, compared to 9.77 percent in the corresponding previous 12-month period.

Meanwhile, the Wage Rate Index increased by 8.22 percent year-on-year in July, slightly up from 8.18 percent in June. Wage growth in agriculture stood at 8.24 percent, while it was 8.15 percent in industry and 8.39 percent in the services sector.

The BBS publishes the monthly Consumer Price Index and inflation data based on a 2021-22 reference year. The CPI covers national, rural and urban consumer groups.​

 

[Saif]

Tax-GDP ratio edges up despite weak economic activity

Bangladesh managed to stem the downturn in its tax-to-GDP ratio last fiscal year with the proportion having edged up by 0.08-percentage point notwithstanding sluggish investment and economic activity, and waning purchasing power of both individuals and businesses. As per the provisional re

thefinancialexpress.com.bd

Tax-GDP ratio edges up despite weak economic activity
NBR running at its traditional pace, reform needed immediately, says CPD director

Bangladesh managed to stem the downturn in its tax-to-GDP ratio last fiscal year with the proportion having edged up by 0.08-percentage point notwithstanding sluggish investment and economic activity, and waning purchasing power of both individuals and businesses.

As per the provisional revenue-mobilisation data from the National Board of Revenue (NBR), the tax-to-GDP ratio stood at 6.78 per cent in FY2025-26, compared to 6.70 per cent a year earlier.

However, the ratio slipped last year from 7.20 per cent in FY24.

The calculation is based only on the NBR's provisional tax-collection figures. The ratio may change once data on non-tax revenue and revenue collected by agencies other than the NBR are incorporated.

The NBR accounts for nearly 90 per cent of Bangladesh's domestic revenue mobilisation meant for financing the national budget.

It collected Tk 4.15 trillion in revenue in FY2025-26, registering a Tk 880-billion shortfall against its revised target of Tk 5.03 trillion.

The shortfall against the original target of Tk 4.99 trillion stood at Tk 840 billion.

Officials say repeated setting of "unrealistic revenue targets" is putting pressure on tax officials and demoralising them when they fail to get to the goals.

A senior NBR official has said revenue mobilisation largely depends on economic activity, particularly development expenditure under the Annual Development Programme (ADP).

But the latest ADP-implementation data show Bangladesh recorded one of its lowest implementation rates last year-only 67.52 per cent of the annual allocation spent.

"Unless overall economic activity normalises, revenue collection will not pick up to the expected level," the NBR official told The Financial Express.

Senior Research Director of the Centre for Policy Dialogue (CPD) Towfiqul Islam Khan thinks higher international prices of commodities, including fuels, helped generate additional revenue during the year.

He also points to disruption during the final quarter of FY2024-25 amid protests within the NBR over the proposed bifurcation of the revenue authority.

"However, the process or any systematic changes are missing, and the NBR is running at its traditional pace, posing challenges to meeting revenue targets in the future too," he says.

Administrative loopholes must be addressed, he suggests, adding that it is unrealistic to expect comprehensive reform within a year, but the government needs to start the process immediately.

He also suggests the government reduce expenditure and prioritise spending, given the country's persistently low tax-to-GDP ratio.

Economists say the marginal increase in the ratio is not significant, particularly as the appetite for domestic revenue is increasing amid a decline in foreign funding sources.

According to provisional NBR data, revenue collection increased by around Tk 450 billion from the previous fiscal year despite continued economic challenges.

Overall revenue collection grew by 12 per cent in FY2025-26.

The NBR, however, once again missed its revenue target, continuing a pattern seen in previous years.

Officials say weak development expenditure had a significant impact on domestic revenue mobilisation as a substantial portion of tax revenue comes from source taxes generated through government development activities.

At the same time, private-sector investment remained subdued, reflecting weak demand for credits and a cautious business environment.

Of the total NBR collection last fiscal year, VAT generated Tk 1.57 trillion, income tax Tk 1.45 trillion, and customs duty and import taxes Tk 1.12 trillion.

The modest improvement in the tax-to-GDP ratio, therefore, offers little comfort to policymakers, economists say, as Bangladesh's fiscal needs to continue to rise while the capacity to mobilise domestic resources remains constrained.

Immediate-past NBR chairman Abdur Rahman Khan said it was challenging to mobilise higher revenue last year than the previous one amid economic hurdles.

"The government should consider providing sufficient budget and logistics for revenue mobilisation so that taxmen can work smoothly," he suggests.​

 

[Saif]

https://www.newagebd.net/post/economy/309611/dhaka-tops-district-remittance-inflows

Dhaka tops district remittance inflows
Staff Correspondent 13 August, 2026, 00:25

New Age file photo

Dhaka topped all districts in workers’ remittance inflows in financial year 2025-26, receiving $13,470.42 million, followed by Chattogram with $3,274.40 million and Cumilla with $2,082.73 million.

The three districts together accounted for more than half of the country’s total remittance inflows during the fiscal year, according to Bangladesh Bank data.

Beyond the top three, several other districts also recorded substantial remittance inflows.

Sylhet received $1,580.94 million, followed by Noakhali with $1,075.75 million, Feni with $995.49 million, Brahmanbaria with $915.57 million, Chandpur with $790.64 million, Moulvibazar with $564.71 million, Narayanganj with $551.28 million, Lakshmipur with $533.79 million, Gazipur with $479.46 million and Habiganj with $401.14 million.

At the divisional level, Dhaka topped the list with $18,481.21 million, accounting for 52 per cent of the national total.

Chattogram division followed with $9,962.85 million, or 28 per cent, while Sylhet division received $2,924.46 million, or 8 per cent.

Khulna division recorded $1,388.86 million and Rajshahi division $1,120.48 million, ranking fourth and fifth respectively.

Bangladesh received $35,589.39 million in workers’ remittances in FY2025-26, up from $30,328.81 million in FY25. The increase was $5,260.57 million, or 17.35 per cent.

Remittance inflows fell 18.11 per cent month-on-month to $2,819.03 million in June 2026 from $3,442.58 million in May.

However, the June inflow was virtually unchanged from the $2,822.53 million received in June 2025.

The data was compiled by the Statistics Department of Bangladesh Bank based on daily reports submitted by all scheduled banks operating in the country.​