Rising inflation squeezes household budgets

The latest inflation figures released by the Bangladesh Bureau of Statistics (BBS) paint a troubling picture of the country's economic reality. With the national point-to-point inflation rate climbing to 9.42 per cent in May from 9.04 per cent in April, Bangladesh has reached its highest inflation level in 16 months. 

However, the more concerning is the fact that inflation now exceeds the level recorded during the same period last year, signaling that burden on consumers continues to intensify rather than ease.

The rise in inflation has been driven by increases in both food and non-food prices. Food inflation surged to 9.06 per cent in May, up from 8.39 per cent in April and significantly higher than the 8.59 per cent recorded in May 2025. 

For millions of households, particularly low- and middle-income families, this means a continued struggle to afford essential commodities such as rice, lentils, edible oil and other daily necessities. As food accounts for a substantial portion of household expenditure, any increase in food prices has an immediate and painful impact on living standards.

Equally worrying is the persistence of non-food inflation, which rose to 9.71 per cent in May from 9.57 per cent in April. This figure is also higher than the 9.42 per cent recorded a year ago. Rising costs in transportation, housing, healthcare, education and other services are adding further pressure on families already grappling with soaring food prices. 

The simultaneous increase in both food and non-food inflation suggests that price pressures have become broad-based and deeply entrenched.

While the BBS data show a marginal improvement in wage growth, the gains are insufficient to offset the rising cost of living. The national wage rate growth stood at 8.21 per cent in May, slightly higher than April's 8.16 per cent but still well below the inflation rate. Sector-wise, wage growth reached 8.22 per cent in agriculture, 8.15 per cent in industry and 8.36 per cent in services.

Although these figures indicate modest progress, they reveal a stark reality: wages are failing to keep pace with inflation, resulting in a decline in real purchasing power.

The latest statistics underscore the urgent need for effective policy interventions to stabilize prices and protect consumers. Inflation is not merely an economic indicator; it directly affects people's ability to meet basic needs. 

Without decisive measures to curb price pressures and strengthen market oversight, ordinary citizens will continue to bear the heavy cost of a prolonged inflationary crisis.