Inflation once again exceeds 9pc, putting middle class under pressure

Inflation has once again exceeded 9 per cent. In April, the latest inflation rate was 9.04 per cent. Experts believe that the increase in fuel prices has impacted inflation. As a result of rising inflation, the pressure on limited and middle-income families has increased once more.

Today, Wednesday, the Bangladesh Bureau of Statistics (BBS) released the inflation figures for April. In March, the inflation rate was 8.71 per cent.

After four consecutive months of rising inflation, it had decreased in March, but it rose again in April. This means that inflation has been over 9 per cent for five of the past six months.

On 19 April, the government increased the prices of all types of fuel. The price of diesel was raised from Tk 100 to 115 per liter, kerosene from Tk 112 to 130, octane from Tk 120 to 140, and petrol from Tk 116 to 135.

An increase in fuel prices affects the cost of living. It raises living expenses, increases transportation costs, and raises production costs of goods.

Consequently, consumers have to buy goods at higher prices than before.

According to BBS calculations, food inflation in April was 8.39 per cent, while non-food inflation was 9.57 per cent. Overall, inflation has surpassed 9 per cent in both rural and urban areas.

When inflation rises, the difficulties of low and middle-income people increase. If their income does not increase, the cost of running a household rises.

In the past two weeks, the price of vegetables has increased by Tk 10-15 per kilogram due to the rise in fuel prices. The prices of fish and meat have also increased. However, rice prices have remained stable.

In April, the national average wage rate was 8.16 per cent. This means that wage growth has been lower than inflation, making it more challenging to purchase goods from the market.

When wage growth or income growth is lower than inflation, ordinary people's difficulties increase, and real income decreases.

If income does not rise in line with inflation, one may have to resort to borrowing to run their household or cut back on various expenses such as food, clothing, and transportation.

On the other hand, a decrease in the rate of inflation does not mean a reduction in the prices of goods. It simply means that the rate of price increase in that specific month is somewhat lower compared to other months.