Wednesday, 22 January, 2025
Amid skyrocketing living costs, more people in Bangladesh are grappling with the relentless challenge of making ends meet.
A street vendor selling leftover mutton korma and pilau shared his daily struggle against the relentless tide of rising expenses.
Nearby, Mojibur Rahman, a day laborer, haggled over the price of pilau, his worn face a testament to his hardships.
“I live in Korail with my family. In just two years, my rent has doubled, but my earnings haven’t increased a bit. I have two children, and costs just keep climbing. I haven’t been able to afford beef in ages. I hoped I could buy some here,” Zahid said, his voice tinged with resignation.
On Thursday, a long queue stretched near the Trading Corporation of Bangladesh (TCB) truck in Tejgaon’s industrial area.
Among the crowd was 60-year-old Kulsum Begum, her face a mixture of exhaustion and quiet despair. She had been waiting for hours, clutching to the hope of finding some relief.
“I stood in this line to save a few taka, but everything was gone before my turn came,” she said, disappointment heavy in her voice.
Rahima, a slum dweller without a family, added her own lament. “I have no husband, no children—just me. Prices keep going up, and survival feels impossible,” she said, reflecting the dire straits of many like her.
Rickshaw-puller Delwar Mia from Chandpur echoed similar woes.
“What I used to earn was just enough to get by. Now, with rising costs and no increase in income, it’s a daily struggle. Saving money? That’s a dream,” said Faruq, another victim of this economic squeeze.
For many, inflation and the accompanying economic hardship have transformed into a year-long battle for survival.
Some essential goods have either vanished from markets or seen sharp price surges, exacerbating the struggles of millions.
This worsening scenario is mirrored in recent statistics. According to the Global Hunger Index, Bangladesh has dropped three places, now ranking 84th out of 127 countries. The country's score this year is 19.4, signifying a moderate hunger level—a slight but significant decline from last year’s score of 19, which had placed Bangladesh at 81st.
The report, jointly prepared by Welthungerhilfe Bangladesh and Concern Worldwide, paints a grim picture:
Adding to the crisis, the World Food Programme (WFP) revealed in an October 9 report that 36% of low-income people in Bangladesh are food insecure. The situation has been further exacerbated by the August floods, which caused 37% of affected households to report income losses.
The report highlighted additional alarming trends:
According to the Bangladesh Bureau of Statistics (BBS), the monthly cost of maintaining a healthy diet with the required daily caloric intake (2,100 kilocalories) is officially set at Tk 1,800—referred to as the food poverty line. However, a November 2024 WFP report reveals that the current minimum monthly expenditure per capita for food has skyrocketed to Tk 3,051, a 69.5% increase over the official food poverty line.
Inflation has further tightened its grip. In November, overall inflation rose to 11.38%, while food inflation surged to nearly 14%. Despite repeated hikes in interest rates to curb inflation, the prices of essential commodities remain stubbornly high.
Wage growth has also failed to keep pace. The latest national wage growth rate stands at 8.10%, consistently trailing inflation rates year after year.
Despite government claims of declining poverty rates, rising costs and stagnant wage growth have plunged an additional 17.8 million people—10% of the population—into poverty or near-poverty over the past two years. This data, cited by a Dhaka University economics professor, underscores the widening gap between economic statistics and the realities of everyday life.
At a workshop organized by the private research institution Research and Policy Integration for Development (RAPID) in Dhaka on December 15, Md. Din Islam, an associate professor of economics at Dhaka University, presented concerning findings about poverty trends in Bangladesh.
He revealed that over the past two years, 7.86 million people have fallen below the tolerable poverty line, while another 9.83 million are at risk of slipping into extreme poverty. During this period, 3.8 million individuals transitioned from poor to ultra-poor status.
The study, which did not involve field surveys, relied on analyses of average inflation and wage growth rates. RAPID calculated poverty and extreme poverty levels based on purchasing power parity, adhering to internationally recognized standards.
Analyzing Bangladesh Bureau of Statistics (BBS) data on inflation and real wages, researchers noted that in the fiscal year 2023-24, over 6% of the population experienced a loss of purchasing power, either newly falling into poverty or facing heightened poverty risk.
According to the latest BBS data, derived from the Household Income and Expenditure Survey (HIES) 2022, the national poverty rate stood at 18.7%, a decrease from 24.3% in 2016. Similarly, extreme poverty rates fell to 5.6% in 2022, compared to 12.9% in 2016.
Md. Din Islam attributed the inflation crisis to flawed government policies. He pointed out that the central bank expanded the money supply by Tk 1 trillion in a year through loans and money printing, flooding the market with cash and exacerbating inflationary pressures.
Zahid Hussain, a former lead economist at the World Bank's Dhaka office, highlighted the gravity of food inflation, saying:
“Food inflation has reached alarming levels not seen in recent times. If left unchecked, options to mitigate its impact will become increasingly limited. Low-income families are bearing the brunt of this crisis. Immediate budgetary support is essential to help them cope.”
Hussain emphasized that merely reducing inflation was insufficient, as wages have not kept pace with rising costs.
“For over three years, inflation has outpaced wage growth in agriculture, services, and industry. Even skilled workers’ wages lag inflation by two to three percentage points. When inflation is at 9%, wage growth is closer to 6%. Addressing food prices and inflation simultaneously is critical for low-income families.”
He recommended expanding the size and scope of social safety net programs:
“Allocations must be increased, both in amount and coverage, to support vulnerable families. Additionally, corruption and mismanagement in aid distribution must be addressed. Mismanagement often prevents aid from reaching intended beneficiaries, whether through family cards, cash assistance, or programs under the Ministry of Women and Children Affairs and the Ministry of Labour and Employment. We must ensure transparency to make these initiatives effective.”
Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), underscored the need for job creation to enhance people’s purchasing power.
“Employment opportunities must be expanded so that people have the means to buy essential goods. For those unable to work, the scope and allocation of social security programs must increase. The Open Market Sales (OMS) and Trading Corporation of Bangladesh (TCB) initiatives should be scaled up, as long queues indicate supply shortages.”
She also called for urgent price controls on essential commodities:
“Inflationary pressure is preventing many people from affording basic goods, even if they have money. The immediate priority is to bring inflation under control and ensure that essential goods are accessible to the general public.”
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Amid skyrocketing living costs, more people in Bangladesh are grappling with the relentless challenge of making ends meet.
A street vendor selling leftover mutton korma and pilau shared his daily struggle against the relentless tide of rising expenses.
Nearby, Mojibur Rahman, a day laborer, haggled over the price of pilau, his worn face a testament to his hardships.
“I live in Korail with my family. In just two years, my rent has doubled, but my earnings haven’t increased a bit. I have two children, and costs just keep climbing. I haven’t been able to afford beef in ages. I hoped I could buy some here,” Zahid said, his voice tinged with resignation.
On Thursday, a long queue stretched near the Trading Corporation of Bangladesh (TCB) truck in Tejgaon’s industrial area.
Among the crowd was 60-year-old Kulsum Begum, her face a mixture of exhaustion and quiet despair. She had been waiting for hours, clutching to the hope of finding some relief.
“I stood in this line to save a few taka, but everything was gone before my turn came,” she said, disappointment heavy in her voice.
Rahima, a slum dweller without a family, added her own lament. “I have no husband, no children—just me. Prices keep going up, and survival feels impossible,” she said, reflecting the dire straits of many like her.
Rickshaw-puller Delwar Mia from Chandpur echoed similar woes.
“What I used to earn was just enough to get by. Now, with rising costs and no increase in income, it’s a daily struggle. Saving money? That’s a dream,” said Faruq, another victim of this economic squeeze.
For many, inflation and the accompanying economic hardship have transformed into a year-long battle for survival.
Some essential goods have either vanished from markets or seen sharp price surges, exacerbating the struggles of millions.
This worsening scenario is mirrored in recent statistics. According to the Global Hunger Index, Bangladesh has dropped three places, now ranking 84th out of 127 countries. The country's score this year is 19.4, signifying a moderate hunger level—a slight but significant decline from last year’s score of 19, which had placed Bangladesh at 81st.
The report, jointly prepared by Welthungerhilfe Bangladesh and Concern Worldwide, paints a grim picture:
Adding to the crisis, the World Food Programme (WFP) revealed in an October 9 report that 36% of low-income people in Bangladesh are food insecure. The situation has been further exacerbated by the August floods, which caused 37% of affected households to report income losses.
The report highlighted additional alarming trends:
According to the Bangladesh Bureau of Statistics (BBS), the monthly cost of maintaining a healthy diet with the required daily caloric intake (2,100 kilocalories) is officially set at Tk 1,800—referred to as the food poverty line. However, a November 2024 WFP report reveals that the current minimum monthly expenditure per capita for food has skyrocketed to Tk 3,051, a 69.5% increase over the official food poverty line.
Inflation has further tightened its grip. In November, overall inflation rose to 11.38%, while food inflation surged to nearly 14%. Despite repeated hikes in interest rates to curb inflation, the prices of essential commodities remain stubbornly high.
Wage growth has also failed to keep pace. The latest national wage growth rate stands at 8.10%, consistently trailing inflation rates year after year.
Despite government claims of declining poverty rates, rising costs and stagnant wage growth have plunged an additional 17.8 million people—10% of the population—into poverty or near-poverty over the past two years. This data, cited by a Dhaka University economics professor, underscores the widening gap between economic statistics and the realities of everyday life.
At a workshop organized by the private research institution Research and Policy Integration for Development (RAPID) in Dhaka on December 15, Md. Din Islam, an associate professor of economics at Dhaka University, presented concerning findings about poverty trends in Bangladesh.
He revealed that over the past two years, 7.86 million people have fallen below the tolerable poverty line, while another 9.83 million are at risk of slipping into extreme poverty. During this period, 3.8 million individuals transitioned from poor to ultra-poor status.
The study, which did not involve field surveys, relied on analyses of average inflation and wage growth rates. RAPID calculated poverty and extreme poverty levels based on purchasing power parity, adhering to internationally recognized standards.
Analyzing Bangladesh Bureau of Statistics (BBS) data on inflation and real wages, researchers noted that in the fiscal year 2023-24, over 6% of the population experienced a loss of purchasing power, either newly falling into poverty or facing heightened poverty risk.
According to the latest BBS data, derived from the Household Income and Expenditure Survey (HIES) 2022, the national poverty rate stood at 18.7%, a decrease from 24.3% in 2016. Similarly, extreme poverty rates fell to 5.6% in 2022, compared to 12.9% in 2016.
Md. Din Islam attributed the inflation crisis to flawed government policies. He pointed out that the central bank expanded the money supply by Tk 1 trillion in a year through loans and money printing, flooding the market with cash and exacerbating inflationary pressures.
Zahid Hussain, a former lead economist at the World Bank's Dhaka office, highlighted the gravity of food inflation, saying:
“Food inflation has reached alarming levels not seen in recent times. If left unchecked, options to mitigate its impact will become increasingly limited. Low-income families are bearing the brunt of this crisis. Immediate budgetary support is essential to help them cope.”
Hussain emphasized that merely reducing inflation was insufficient, as wages have not kept pace with rising costs.
“For over three years, inflation has outpaced wage growth in agriculture, services, and industry. Even skilled workers’ wages lag inflation by two to three percentage points. When inflation is at 9%, wage growth is closer to 6%. Addressing food prices and inflation simultaneously is critical for low-income families.”
He recommended expanding the size and scope of social safety net programs:
“Allocations must be increased, both in amount and coverage, to support vulnerable families. Additionally, corruption and mismanagement in aid distribution must be addressed. Mismanagement often prevents aid from reaching intended beneficiaries, whether through family cards, cash assistance, or programs under the Ministry of Women and Children Affairs and the Ministry of Labour and Employment. We must ensure transparency to make these initiatives effective.”
Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), underscored the need for job creation to enhance people’s purchasing power.
“Employment opportunities must be expanded so that people have the means to buy essential goods. For those unable to work, the scope and allocation of social security programs must increase. The Open Market Sales (OMS) and Trading Corporation of Bangladesh (TCB) initiatives should be scaled up, as long queues indicate supply shortages.”
She also called for urgent price controls on essential commodities:
“Inflationary pressure is preventing many people from affording basic goods, even if they have money. The immediate priority is to bring inflation under control and ensure that essential goods are accessible to the general public.”
4o
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