Wage-Inflation Gap Cuts Real Income of Workers
Collected Photo
The real income of workers has significantly decreased as a 1.21 percent point gap has emerged between wages and inflation.
General Economics Division (GED) of the Planning Commission confirmed the matter in the June report titled “Economic Update and Outlook” on Wednesday.
In the report, GED Member (Secretary) Monzur Hossain said, “Overall inflation rose to 9.42 percent in May from 9.04 percent in April due to massive price pressure on food and non-food items. As a result, people’s cost of living has increased and real income has decreased.”
The report added that the banking sector’s liquidity has strengthened, with annual deposits increasing by nearly 12 percent. On the other hand, credit growth in the private sector remained limited to 4.75 percent.
It mentioned that the National Board of Revenue (NBR) was only able to collect 73 percent of its revised revenue target in May. This has resulted in a deficit of Tk 12,266 crore across the three main revenue sources.
The implementation rate of the Annual Development Program (ADP) has dropped to 48.23 percent in the 2026-27 fiscal year. During the same period, total development expenditure decreased by 9.2 percent compared to the previous year.
However, the report also pointed out that the country’s external sector resilience was maintained until 26 May, driven by strong remittance inflows and growth in ready-made garment exports.
