The country’s inflation rate dropped to 9.32 per cent in February, the lowest in 22 months. However, this promising statistic does not inspire much hope among low- and middle-income people, whose hardships remain unchanged.
Although inflation has slightly decreased, their incomes have not increased much; rather, real income and purchasing power continue to slump. Experts say that real income decreases when the rate of inflation exceeds the rate of wage growth.
According to the latest data from the Bangladesh Bureau of Statistics (BBS), while inflation in February was 9.32 per cent, the wage growth rate was only 8.12 per cent.
This means that despite inflation, wage growth has been slower, resulting in lower real income compared to the previous year, even for those earning the same salary.
Moreover, the wage growth rate, which was 8.16 per cent in January, plunged to 8.12 per cent in February on a point-to-point basis.
The private research organisation Research and Policy Integration for Development (RAPID) published a study in December which indicated that between 2022 and 2024, a significant number of people have tumbled below the poverty line, with around 10 million more at risk of becoming poor.
Dr Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development and former chief economist of Bangladesh Bank, told Bangladesh Pratidin, “Although inflation has decreased slightly in February, it has remained nearly 10 per cent for a long time. Moreover, the rate of wage growth has also been declining for several years compared to inflation. As a result, not only the lower class but also the middle class has been continuously losing purchasing power.
Due to prolonged high inflation, many people have been forced to spend their savings to meet household expenses. The long queues of low-income and working-class people behind TCB trucks are evidence that their purchasing power has been depleted.”
The galling scenario of TCB truck queues
A viral video on social media platforms displayed countless men and women running behind TCB's mobile trucks at various points in the capital, despite fasting in the blazing heat. Their desperate rush for the truck indicates their struggle to purchase essential goods at fair prices.
According to TCB, it currently operates 410 trucks nationwide, including 50 in Dhaka and 20 in Chattogram. Each customer is allowed to purchase up to two litres of edible oil, two kg of lentils, one kg of sugar, two kg of chickpeas, and 500 grams of dates. Buying these items from TCB trucks saves around Tk 300 to Tk 400 per person compared to the conventional market prices.
However, each TCB truck contains goods for only 250 people, while the queue often surpasses 400 to 500 people. Consequently, people often seem to be battling to get the reduced-priced goods. Whoever stands in the first rows wins the fierce competition. This battle for survival has become a harsh reality for many families living on low and limited incomes.
At Mirpur’s Number 6 Kitchen Market, a woman waiting in line shared her plight without revealing her identity. She said that her husband works at a private company. His salary barely covers rent, their two children’s education, and other expenses. To save some money, she waits for TCB's products, as surviving on a limited income has become a struggle for every low- and middle-income family.
TCB’s efforts to meet demand
Humayun Kabir, spokesperson for TCB, told Bangladesh Pratidin that they have doubled the number of trucks to meet people’s needs, increasing from 200 to nearly 400 since March 5, considering Ramadan. In addition, TCB is also selling rice at fair prices through its own dealers and the Directorate General of Food. Yet, the demand remains unmet.
Mustafa K Mujeri remarked that the chaotic scenes of people fighting for TCB products are inhumane and exacerbate the suffering of those already in distress. He urged the government to take humanitarian initiatives to increase real income rather than relying on truck sales to manage the crisis.
Translated & edited by Fariha Nowshin Chinika
