Soaring Inflation Strains Household Budgets

The country’s overall inflation rose to 9.42 percent in May, marking the highest level in the past 16 months. The rate is the highest since February last year, compared to 9.04 percent in April. Food inflation increased to 9.06 percent in May from 8.39 percent in the previous month. Non-food inflation rose to 9.71 percent, up from 9.57 percent in April. Analysts said the increase was driven by higher fuel prices and warned that the upward trend may continue in the coming months.

The rise in inflation has placed significant pressure on ordinary people, as incomes have not increased in line with the rising cost of essential goods. Lower- and middle-income groups are facing the greatest strain. The Bangladesh Bureau of Statistics (BBS) released the May inflation data on Sunday through its Consumer Price Index report.

The report showed that rural inflation rose to 9.48 percent in May from 9.05 percent in April. Food inflation in rural areas increased to 8.95 percent from 8.23 percent, while non-food inflation rose to 9.98 percent from 9.81 percent.

In urban areas, overall inflation increased to 9.25 percent in May from 9.02 percent in April. Food inflation rose to 9.29 percent from 8.81 percent, while non-food inflation increased to 9.24 percent from 9.15 percent.

Sources said fuel prices increased twice in April and May. On April 19, the government raised prices across all fuel categories, increasing diesel from Tk 100 to Tk 115 per liter, kerosene from Tk 112 to Tk 130, octane from Tk 120 to Tk 140, and petrol from Tk 116 to Tk 135. Another price hike followed on May 31.

The fuel price increases have negatively impacted the cost of living, pushing up prices across transport and other sectors, which contributed to the rise in inflation in May.

Wage growth, however, remained marginal. The general wage rate rose to 8.21 percent in May from 8.16 percent in April. Agricultural wages increased to 8.22 percent from 8.19 percent, industrial wages rose to 8.15 percent from 8.09 percent, and service sector wages increased to 8.36 percent from 8.31 percent.

Planning State Minister Ziauddin Ahmed Saki said, “We are not hiding any information. Unlike the previous government, statistics are not being concealed under the carpet. The BBS is publishing whatever data it is receiving.”