Take effective measures to alleviate the suffering of low-income people

Only those who belong to the middle and low-income classes know how they have been surviving for the past two years. Recent surveys have revealed that a portion of the middle class is now barely holding onto that status, with their living conditions having deteriorated to the level of the lower middle class. As for the low-income people, their situation is even worse; they are merely struggling to survive.

According to a report published by the government agency Bangladesh Bureau of Statistics (BBS) on Tuesday, May 21, it has been revealed that for 24 consecutive months, or two years, the rate of wage growth has been lower than the rate of inflation. This means that each month, wages are increasing at a slower rate than inflation. Consequently, the expenses of a large number of people are rising faster than their income. As a result, purchasing power is steadily declining, and poor and fixed-income individuals are struggling to keep up with their expenses.

According to the available data, overall inflation has been above 9 percent for 14 consecutive months. In March 2023, inflation first exceeded 9 percent and has not fallen below that level since. Most recently, in April, inflation stood at 9.74 percent. This means that for the past 14 months, you have had to pay, on average, 9 percent more for goods and services compared to the same time last year. For example, if you spent 100 taka on goods in April last year, you would need to spend 109.74 taka for the same goods in April this year.

After the COVID-19 pandemic, the Russia-Ukraine war, which began in February 2022, caused global commodity prices to rise. This crisis also led to an increase in the price of the dollar in the country, further driving up the prices of goods and triggering inflation. Most recently, in April, the national wage growth rate was 7.85 percent, while inflation stood at 9.74 percent.

The BBS calculates this data based on the wages of 145 low-skill professions across both rural and urban areas. This large population, dependent on wages, feels the pressure of inflation the most. According to BBS, about 86 percent of the country's workforce is employed in the informal sector, which amounts to approximately 6 crore people.

In addition, the prices of other essential items such as soap, toothpaste, and educational materials are also rising. As a result, many middle-class and lower-middle-class families are finding it increasingly difficult to bear the cost of their children's education. They are now struggling to afford the necessary expenses for their children's schooling.

The situation has reached a point where people who once lived in apartment buildings are now forced to move into tin-roofed houses. Simple luxuries of life, such as dining out at restaurants or occasional trips and outings, are no longer affordable for many. For low-income individuals, the only struggle now is to survive in an increasingly expensive market.

Now the issue is that market syndicates are raising the prices of essential goods, along with other commodities, using various tactics. However, the income of certain income-dependent individuals is not increasing. What should be done for them? It's this group of people, those in specific income brackets, who form a significant portion of the population and bear the brunt of inflation the most.

When income doesn't increase, they start cutting back on non-essential aspects of their lives. Gradually, they have to eliminate many necessary expenses as well. In such situations, they barely manage to survive.

Various reports on Bangladesh's different crises regularly make headlines, yet visible government initiatives to alleviate them seem lacking. However, if people with specific incomes aren't relieved from the pressure of this alarming inflation, then crises from various angles will soon emerge.

Education, healthcare, production, law enforcement - all aspects will be affected by this crisis. Therefore, effective government measures must be taken to increase the income of those with specific low incomes and to ensure the control of prices of essential commodities.