Staff Reporter :
Although global food commodity prices declined by 2.1 per cent in 2024 compared to the previous year, Bangladesh experienced the opposite, with a persistent rise in food prices remaining a significant concern for the general public.
According to the latest report by the United Nations Food and Agriculture Organization (FAO), the global Food Price Index for 2024 averaged 122 points, 2.6 points lower than the 2023 average. In stark contrast, data from the Bangladesh Bureau of Statistics (BBS) reveals that food inflation in the country has exceeded 10 per cent since April 2023.
During the first three months of 2023, food inflation was contained in single digits at 9.56 per cent, 9.4 per cent, and 9.87 per cent, respectively.
However, it surged significantly from 9.87 per cent in March to 10.22 per cent in April, continuing its upward trend. By the end of June, food inflation had risen to 10.42 per cent and alarmingly surpassed 14 per cent in July-the highest level in 13 years.
In November 2023, food inflation increased to 13.80 per cent, up from 12.66 per cent in October, reflecting sustained pressure on consumers. Overall inflation in Bangladesh has remained above 9 per cent since March 2023, driven primarily by escalating food prices in both urban and rural markets. Although non-food inflation also increased, it did so at a slower pace than food inflation.
At the same time, monthly wage growth for the working-class population has consistently lagged behind the overall inflation rate, a trend persisting for 34 months since February 2022. Workers have been compelled to reduce consumption to cope with increasing financial distress, as food inflation has outpaced wage growth since May 2022.
For the last financial year, the wage growth of workers stood at 7.74 per cent whiles the Consumer Price Index (CPI), commonly referred to as overall inflation, rose to 9.73 per cent, highlighting the widening gap between earnings and the cost of living.
