Surging food inflation, unmoving wages clash: Consumers, sellers pinch pennies

"There's corruption in the edible oil distribution. Just simple corruption," a shopkeeper in Shah Department Store in Eskaton yells out. 

The customer, holding a small bottle of edible oil in his hand, replies: "Has to be. The price was Tk90 just yesterday. How is it Tk100 today!"

Outside the store, Shah Alam, the store owner nods his head in frustration. 

"There is barely any supply of oil. At the same time, the prices of everything have gone up. Customers come, ask for the prices of daily necessities and then leave," he says.

For over two-and-a-half years now, low-income workers in Bangladesh have been losing a quiet but relentless battle: the struggle to keep their wages in step with the soaring cost of food.

The latest data from the Bangladesh Bureau of Statistics (BBS) showed food inflation in November surged to 13.80%, while wages of low-paid skilled and unskilled labour grew by only 8.10%, leaving a significant gap of 5.7 percentage points. 

This gap underscores the persistent erosion of real incomes as workers struggle to afford essential goods.

Since May 2022, inflation has consistently climbed faster than wages. In July, food inflation reached a staggering 14.10%, outpacing wage growth by 6.17 percentage points – the highest in years.

In November, wage growth across 63 occupations in the agriculture, industry and service sectors registered a slight increase of less than 1 percentage point compared to October, rising from 8.07% to 8.10%.

Meanwhile, food inflation continues its relentless rise, jumping from 12.66% to 13.80%, further intensifying financial pressure on households.

The impacts of both – soaring costs and low wage growth experienced across all sectors – are felt everywhere on the ground. 

The reasons and impact, however, differ from person to person. 

Khairul Haque, another shopkeeper, said the hike came from the source. "We buy cartons from wholesalers. They now charge anywhere between Tk100-Tk300 higher. Similarly, the vans used to carry the goods would take Tk50. Now they charge as high as Tk150," he said. 

To cope with rising prices, others also tend to raise their price, thus affecting inflation further. 

But the soaring costs aren't matched by a similar wage growth. 

Why sticky downwards matters

Wage growth has remained shy of 8%, rising to 8.10% in only November this year. 

Manwar Islam, a private job holder, is facing the brunt of inflation. 

His last increment came a year ago; around 2.5%. 

In the same month, inflation had risen by 12%. The double-digit trend of inflation growth continued till December of that year, but his salary did not grow any further. 

"We had to cut down on a number of things, especially beef. We also ate out less. I don't see the situation improving, because by the time my next increment comes, prices will be even higher," he said.

He added that apart from food, prices of electricity, water and his rent had also gone up. 

Jotirmoy Chakraborty, another private job holder, had a more optimistic take. 

"Because winter is here, the prices of winter vegetables are much less. There's been some respite. Prices of carrots have fallen, from Tk180 to Tk90, for instance. Similarly, eggplant now costs Tk30 instead of Tk60," he said. 

Asked about his salary, Chakraborty said he had changed jobs last year which resulted in a bigger increment than usual. 

Abdul Motaleb, a vegetable seller in Eskaton, however, said in comparison to last year, the prices of winter vegetables were higher. 

"It is lower than a few months ago but higher than last year. For example, last year, potatoes were being sold for Tk50. Now it is Tk110. For most, prices are between Tk10-30 higher."

He also said people were buying less.

Day labourer Md Fazlul Haque also finds little to be uplifted about. 

"I work 2-3 days a week and get Tk700-1,000 daily. I can't get work like before. I can't even send Tk1,000 back home each week. For me, the price of most vegetables is also high. I am relying on borrowed money mostly." 

He said his meal at the mess he lives in was hiked by Tk10 to Tk90 three months ago. 

"I don't eat beef. I eat chicken once a month. If I go back home, I buy a kilogramme of beef. But now I don't even make enough to go home," he said. 

'Feel helpless in the market'

For non-wage earners, there have been ups and downs. 

Rickshaw Puller Md Rahman, hailing from Sherpur,  has been facing more difficulties maintaining his family in recent months.

"I earned around Tk500-600 daily, but after paying all my costs, I can send around Tk1,000 back home per week.  This is very insufficient. I have one child and he needs healthy food. Sometimes, I go a whole day without eating."

He said his budget and the current prices were far apart.

"I feel very helpless when I go to the market. Even the meals I take in the rickshaw garage now cost Tk30 more than before. We mostly eat vegetables, and on rare occasions we have fish."

Nur Alam, a rickshaw puller, says his food habits have not changed drastically in the past few months. 

"Prices of some things fell. If prices rose, so did my income," he said. 

He said he had hiked his fare accordingly and was making do. 

"I also never ate too fancy," he said with a laugh.  

Jahangir, a CNG-run autorickshaw driver, faced a different reality. 

"Rickshaw fare prices can be increased by Tk5 or Tk10. But I can't do that. People are used to old fares even though what I have to pay to the garage owner has gone up alongside an increase in the price of fuel."

He said at the same time, he had to cut down on his food – the easiest expenditure to trim.

"There was a time we could eat potatoes and eggs. But now even potatoes are Tk90 per kg. Onion prices are also high. We bought a dozen eggs at Tk200 but then began to buy it at Tk150. But what was it before that? No one talks about that."

The wholesale price of eggs was Tk200 per 100 eggs. Now it's Tk150. But what was it before? People forget.