Skyrocketing living costs worsen hardship of low income people

During the corona period, on the one hand the cost of living has increased, and on the other hand, income has decreased. Low-income people are in even more trouble. The annual report of the Consumer Association of Bangladesh (CAB) reveals a picture of increasing living expenses of the residents of Dhaka city. The picture of the whole country is more or less the same.

Although relatively well-off people can afford this extra expense, it is very difficult for the lower-income and lower middle class. Many are forced to deal with the situation by dipping into their savings or borrowing. The report said that during corona prevalence last year, the income of people engaged in small and medium enterprises and the informal sector declined. As a result, the number of people living below the poverty line has increased from 20 to 40 per cent. However, the government is not acknowledging the rise in poverty.

According to CAB, the cost of living in Bangladesh has increased by 6.88 per cent in 2020 compared to the previous year. That means, in 2020 where they would spend 100 taka on living expenses, in 2020 they have to spend 106.88 taka for the same purpose. During this period, the prices of food and non-food products and services have increased by 6.31 per cent. The organisation has compiled a report on the collected prices of 114 food items, 22 consumer goods and 14 services from 15 retail markets and various services in the capital.

The price of rice has made low-income people more concerned during the corona period. Boro yield has been very good this year, but it remains to be seen whether traders and rice mill owners are behind the price hike. Besides, the price of edible oil has also increased by 35 to 40 per cent. The prices of flour, sugar, lentils, onions, spices and so on have also gone up.

The CAB report did not include the cost of education, medical care and public transport. Every family has had to spend extra for healthcare in the pandemic and is still doing so. In that case the cost of living will be more. However, according to a survey conducted by the Bangladesh Bureau of Statistics (BBS), people's income has decreased by 20 to 25 per cent during the pandemic. The amount of income reduction is even higher according to informal data.

In this situation, low income people needed little assistance from the government. While the government could not provide much cash assistance, it could have provided some relief to the people by increasing market control and reducing service sector (such as water, gas and electricity) tariff. But gas, electricity and water tariff has been increased from time to time even during the corona period.

Although the government sells some products including lentils, oil, sugar in the open market at relatively low prices through TCB, its quantity is so low that it has no impact on the market. To handle the situation, we need to increase product sales across the country through TCB. At the same time, market surveillance needs to be strengthened so that no syndicate can create an artificial crisis and raise the price of goods at an abnormal rate.

The government should not only think of the upper class, but also of the loss of jobs in the pandemic, the decline in income of the common people and how fast they can be employed.