Non-food costs offset inflation relief as wages lag

Bangladesh’s overall inflation eased slightly to 8.27 per cent in October, driven by a drop in food prices due to early winter vegetable supplies. However, non-food inflation climbed to a 41-month high of 9.89 per cent, offsetting the modest decline in the headline rate and keeping the cost-of-living challenge persistent for households.

Wage growth remained below inflation for 57 consecutive months, with the national wage rate index rising by 7.63 per cent in October compared to overall inflation of 8.27 per cent. This gap continues to erode workers' purchasing power, as higher fuel prices and slower raw material imports drive up transport and production costs across the economy.

The disparity was evident in both rural and urban areas, where non-food costs rose while food costs fell. In rural areas, non-food inflation crossed the double-digit mark to 10.21 per cent, while urban non-food inflation reached 9.48 per cent. Experts warn that the effects of higher energy expenses are gradually spreading, restricting supply and sustaining pressure on consumer budgets.

Read the full story at dailynewnation.com.