India’s Inflation Falls Below 1%; Bangladesh Still Around 8%

Nov 13, 2025
Business

Photo: Flags of Bangladesh and India (Collected)

Staff Reporter | PNN:

India’s central government has achieved unprecedented success in controlling retail inflation. In October, India’s retail inflation dropped to just 0.25%, well below the Reserve Bank of India’s (RBI) target of 4%.

Economic Times reports that falling food prices and government tax exemptions were the main factors. Prices of cars and essential goods have also decreased. With inflation under 6% for seven consecutive months and October’s 0.48% being lower than expected, this marks historically low retail inflation in India.

In contrast, Bangladesh’s inflation remains around 8%. According to Bangladesh Bureau of Statistics (BBS), October’s inflation slightly decreased to 8.17%, down from 8.36% in September. Analysts note that even below 10%, 8% inflation still significantly affects daily life.

To control inflation, Bangladesh Bank has raised the policy rate to 10%. Economists argue that increasing the policy rate alone is insufficient. Government economic advisors Salehuddin Ahmed, Wahiduddin Mahmud, and trade advisor Sheikh Bashiruddin support reducing interest rates, believing that higher rates do not stimulate growth.

Experts suggest that effective fiscal policy and market regulation, alongside monetary policy, are essential to curb inflation. India’s experience shows that lower retail inflation can increase household spending capacity, boost domestic demand, and positively impact GDP growth.