Muhid Hasan :
Food inflation in Bangladesh has remained above the two-digit mark for 10 consecutive months since March last year, although it slightly decreased to 10.72 per cent in January this year, according to the latest data from the Bangladesh Bureau of Statistics (BBS) published on Tuesday.
The prices of foodstuffs surged significantly from 9.87 per cent in March last year to 10.22 per cent in April, remaining unfavorable to consumers.
By the end of June, it had reached 10.42 per cent, and alarmingly, it exceeded 14 per cent in July for the first time in 13 years.
In November 2024, food price rose to 13.80 per cent, up from 12.66 per cent in October.
The BBS data further showed that the country’s Consumer Price Index (CPI) fell to 9.94 per cent in January 2025 from 10.89 per cent in last December, although it has remained above 9 per cent for over two and a half years.
However, non-food inflation edged up slightly, increasing to 9.32 per cent in January from 9.26 per cent in December, indicating continued price pressures in other sectors.
In January this year, nominal wage growth stood at 8.16 per cent, remaining below the inflation rate for the past three years, government data revealed.
In 2024, Bangladesh grappled with soaring inflation, which averaged 10.33 per cent, far surpassing the 7.94 per cent wage growth.
Over the past three years, inflation has consistently risen at nearly double the rate of wages.
In 2023, inflation reached 9.55 per cent, while wages grew by just 7.43 per cent. In contrast, data from 2021 showed inflation at 5.54 per cent against a 6.07 per cent wage growth.
The prolonged gap between wage growth and inflation has resulted in lower-income households and the broader working population consuming fewer essentials and cutting back on expenses. Experts warn this trend could lead to adverse social consequences.
Addressing the high rate of inflation, Finance Adviser Dr Salehuddin Ahmed said yesterday that the government has implemented several measures to tackle rising inflation, but their impact will take two to three months to become visible.
Acknowledging the challenges posed by high inflation, Dr Ahmed expressed confidence that the average inflation rate would fall to 6-7 per cent by June this year.
He made these remarks while speaking to journalists after a meeting of the Cabinet Committee on Government Purchases at the Secretariat.
Veteran economist and Ekushey Padak recipient Professor Dr Muinul Islam told The New Nation that real income for the working class has been consistently declining.
He explained that inflation acts like a tax, disproportionately affecting poor and middle-income families, who struggle to align their income growth with rising household costs.
Dr Islam further noted that over the last decade or more, the labour class has not received a fair share of wages.
He urged the interim government to implement effective policy measures to boost wage growth and control inflation, based on accurate and comprehensive data from all sectors.