STAR BUSINESS REPORT

Despite a modest fall in prices, rice inflation remained elevated in November, continuing to exert significant pressure on overall food inflation.

Rice was the single largest contributor to food inflation, accounting for 40.28 percent in November, down from 47.01 percent in October, according to the Economic Update and Outlook, a monthly publication of the General Economic Division (GED) under the Planning Commission, released yesterday.

The contribution from all major rice varieties declined during the month. Medium rice’s contribution fell to 17.68 percent in November from 19.54 percent in October, fine rice declined to 6.57 percent from 7.20 percent, while coarse rice dropped to 12.65 percent from 16.81 percent.

Overall rice inflation also showed a clearer downward trend, easing to 12.26 percent in November from 13.77 percent in October.

Dry fish remained another major driver of food inflation, contributing slightly more than 39.33 percent in November.

As a result, general inflation edged up to 8.29 percent in November 2025 from 8.17 percent in October, with food inflation rising to 7.36 percent from 7.08 percent.

Non-food inflation, meanwhile, remained broadly stable at around 9 percent.

GED data also showed that the gap between price and wage inflation widened slightly in November. Price inflation stood at 8.29 percent, compared with wage inflation of 8.04 percent.

The revenue target for fiscal year 2025-26 (FY26) was set at Tk 4,99,000 crore, with a target of Tk 36,326 crore for November 2025. Actual revenue collection during the month stood at Tk 29,658 crore, falling short of the target by Tk 6,668 crore.

Meanwhile, the Annual Development Programme (ADP) utilisation in November 2025 showed some improvement compared to earlier months. However, expenditure remained lower than expected for this critical period, raising concerns about implementation momentum.

Bank deposits reached Tk 19,24,635.70 crore in October, registering a year-on-year growth of 9.62 percent. This followed stronger growth in August, when deposits rose by 10.02 percent, and before easing marginally to 9.98 percent in September.

The sustained growth from August through October indicates continued depositor confidence and healthy savings mobilisation. November data has not yet been released.

Credit expansion showed moderate trends across segments in October. Public sector credit growth slowed to 21.43 percent from 24.45 percent in September, while private sector credit growth edged down slightly to 6.23 percent from 6.29 percent.

Overall domestic credit stood at Tk 23,35,885.40 crore, with growth decelerating to 9.62 percent from 10.20 percent a month earlier.

Foreign commercial banks recorded the highest interest rate spread at 8.88 percent in October, indicating wider margins between lending and deposit rates. In contrast, specialised and development banks posted the lowest spread at 3.37 percent, reflecting their mandate-driven operations and concessional lending.

State-owned and private commercial banks reported similar spreads of 5.69 percent and 5.59 percent, respectively, suggesting convergence in pricing behaviour.