Staff Reporter :
In Bangladesh, the struggle for daily survival has intensified as the prices of essential goods continue to soar, leaving citizens grappling with the harsh reality of a growing gap between income and expenses.
The New Year has brought no respite, and citizens like Anisur Rahman and Sumon Mia find themselves at the forefront of the economic crisis.
Anisur Rahman, a private company employee in Mirpur, Dhaka, shares his disappointment over the abnormal increase in the prices of daily necessities. The unmanageable cost of living in the capital has forced him to relocate his family to a rural home, accumulating debt in the process.
Similarly, Sumon Mia, working tirelessly in Motijheel, finds himself compelled to engage in ride-sharing after work to cover his family’s daily expenses, despite working a regular job throughout the day.
Lower and lower-middle-income families are particularly affected, facing daily hardships due to increased expenses compared to income.
The Bangladesh Bureau of Statistics (BBS) reveals alarming statistics, indicating that the average inflation rate from July to January stands at 9.70%, surpassing the 7.67% growth rate of average wages during the same period.
Over the past three years, this trend of increasing inflation rates, doubling that of wage growth, has persisted.
The inflation rates for fiscal years 2021, 2022, and 2023 were 5.56%, 6.15%, and 9.02%, respectively, while wage growth rates were 6.12%, 6.06%, and 7.04%. The widening gap between income and expenses is further exacerbated by a 5.89% increase in national house rents from October to December, as reported by the House Rent Index (HRI) of the BBS.
The Consumer Association of Bangladesh (CAB) emphasizes the alarming increase in house rents in the capital, rising by approximately 400% in the last 25 years, compared to a 200% increase in the prices of daily necessities.
The inflationary pressure is attributed to a dollar crisis and a global economic downturn, making it challenging for the country to manage and control inflation.
Ana Bezard, the World Bank’s Country Manager (Operations) overseeing Bangladesh, acknowledges the severity of the situation and pledges the World Bank’s assistance in the government’s efforts to manage the crisis.
Finance Minister Abul Hasan Mahmood Ali, while admitting that controlling inflation overnight is not feasible, assures the public that efforts are underway, and results must be awaited.
As Bangladesh faces a significant economic challenge, the collaboration between the government and international institutions becomes crucial in navigating these turbulent times. The citizens eagerly await tangible solutions to bridge the growing gap between income and expenses, hoping for a more stable and prosperous future.