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DHAKA: Bangladesh’s inflation rate rose slightly to 8.34% in September, up from 8.26% in August, according to data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday.
After remaining above 9% for three consecutive months, inflation declined in July and August before rising again in September. Officials and economists believe the increase was partly driven by the impact of higher fuel prices during the second half of the month.
According to BBS data, food inflation stood at 7.22%, while non-food inflation reached 9.30% in September.
Impact on Household Budgets
Higher inflation is putting additional pressure on low- and middle-income households. When income fails to rise in line with the cost of living, people’s real purchasing power declines, making it harder to manage household expenses.
On September 21, the prices of octane, petrol and diesel were increased by Tk 20 per litre. The increase raised transportation costs, contributing to higher prices of essential goods, including vegetables, fish and meat.
At the same time, the national average wage growth rate declined to 7.90% in September, from 8.05% in August. Since wage growth remained below the inflation rate, people faced greater difficulty maintaining their purchasing power.
When wages rise more slowly than prices, households may have to borrow money or cut spending on essentials such as food, clothing and transportation.
In short, rising fuel prices are adding to transportation and supply costs, pushing up the prices of goods while incomes are failing to keep pace with inflation.
