Staff Reporter :
The point-to-point inflation rate in Bangladesh has persistently remained above 9 percent since March last year, offering little relief for the poor and low-income population.
Despite a global decline in inflation rates following the drop in global commodity prices, Bangladesh has not experienced similar benefits. Instead, inflation in the country continues unabated.
Experts attribute the surge in commodity prices primarily to factors such as escalating global transportation costs, import restrictions, depreciation of the local currency, the dollar crisis, and India’s export ban on certain food items.
According to the latest report by the Bangladesh Bureau of Statistics (BBS), headline inflation in January this year surged by 45 basis points to 9.86 percent, following December’s 9.41 percent and November’s 9.49percent.
In August 2023, inflation rose by 23 basis points to 9.92 percent, driven by a significant increase in food inflation, which soared by 278 basis points to 12.54 percent—the highest since October 2011. However, recent BBS data indicate a slight easing in food inflation last month, while non-food inflation saw a sharp rise.
Non-food inflation surged by 80 basis points to 9.42 percent in January from 8.52 percent in the previous month, while food inflation decreasedmarginally to 9.56 percent from 9.58 percent.
The annual average inflation from February 2023 to January 2024 reached 9.59 percent. Rural inflation climbed by 22 basis points to 9.70 percent in January, while urban inflation rose to 9.99 percent from 9.15 percent in the previous month.
Meanwhile, wage growth has lagged behind inflation for the past 24 months, as indicated by the BBS report, which shows a wage rate growth of 7.77 percent in January, up from 7.74 percent in the previous month.
Zahid Hussain, a former lead economist of the World Bank’s Dhaka office, expressed concern over the current inflationary pressure and income disparity among the low-income groups.
He emphasized that with salaries increasing at a slower rate than inflation, the purchasing power and quality of life for individuals in the low-income bracket have significantly eroded, leading to a vicious cycle with no immediate signs of recovery.
