Prices rise faster than wages
Inflation edged up to 8.34 percent in September, while wage growth slowed across all major sectors, widening the gap between household incomes and the cost of living and further squeezing ordinary families.
According to the Bangladesh Bureau of Statistics (BBS) released on Wednesday, general inflation rose to 8.34 percent in September from 8.26 percent in August, an increase of 0.08 percentage points in a month. Over the same period, the general wage index fell to 7.9 percent from 8.05 percent.
Because wages are rising more slowly than prices, the real purchasing power of workers is shrinking.
Food prices were the main driver of the increase.
Food inflation climbed to 7.22 percent from 7.02 percent in August, a rise of 0.20 percentage points, and the effect is being felt most directly in the kitchen.
Fish, meat, cooking oil, lentils, salt and vegetables all cost more, and for families that spend the largest share of their income on food, even small monthly increases add up quickly.
Households in this position are often forced to make hard trade-offs, such as buying smaller quantities, switching to cheaper and less nutritious items, or cutting back on protein altogether.
Non-food inflation stood at 9.30 percent, marginally lower than August’s 9.32 percent but higher than the 8.98 percent recorded in September last year.
Since this category covers expenses such as housing, transport, health care and education, families face rising costs on the essentials of daily life even where food prices ease. For many, that leaves little room to absorb an unexpected medical bill or school fee without borrowing or drawing down savings.
The burden is not spread evenly. General inflation was 8.38 percent in rural areas, compared with 8.26 percent in cities, meaning village households are facing slightly steeper price rises even though many depend on agricultural work, where wage growth is also slowing.
The wage figures point to mounting pressure across the economy. The agricultural wage index fell to 7.89% in September from 8.07% in August. The industrial index declined to 7.86% from 7.97%, while the services index dropped to 8.07% from 8.25%.
In all three sectors, wage growth is now trailing the 8.34% inflation rate, meaning farm labourers, factory workers and service employees are seeing their real incomes eroded.
With incomes rising more slowly while the cost of living continues to climb, low-income households are caught in a difficult bind, forced to stretch limited earnings across a basket of goods that is becoming more expensive each month.
Speaking to this correspondent on Wednesday, Harun Ur Rashid, a private-sector employee, said it has become increasingly difficult to support his family as the prices of essential goods, utility bills, including electricity, and fuel continue to rise.
“Where will we lodge our complaints? We have nowhere to go,” he said.
He urged the government to take immediate steps to keep the prices of essential goods under control.
He also called for lower fuel prices and said the government should prioritise relief for ordinary people over large-scale development projects.
