Inflation climbs to 8.34%, deepening pressure on low-income households

The country’s rising inflation continued to squeeze household budgets in September, with consumer prices climbing while wage growth slowed, widening the gap between earnings and living costs and making it increasingly difficult for low-income families to make ends meet.

The general inflation rate rose to 8.34 percent in September from 8.26 percent in August, according to the latest data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday (October 7).

The increase came as food inflation accelerated, adding to the pressure on consumers already struggling with the cost of everyday essentials.

Food inflation climbed to 7.22 percent in September from 7.02 percent a month earlier. Consumers faced higher expenses for essential items, including fish, meat, edible oil, pulses, salt and vegetables, further tightening household budgets.

Non-food inflation, meanwhile, edged down slightly to 9.30 percent in September from 9.32 percent in August. However, it remained above the 8.98 percent recorded in September last year, indicating that price pressures outside the food sector also remain elevated.

At the same time, wage growth failed to keep pace with the broader cost of living. The national wage rate index rose by 7.90 percent in September, down from 8.05 percent in August. With overall inflation at 8.34 percent, wage growth lagged behind price increases, putting further pressure on workers’ purchasing power.

The slowdown in wage growth was recorded across agriculture, industry and services. In agriculture, wage growth fell to 7.89 percent in September from 8.07 percent in August. The rate in industry declined to 7.86 percent from 7.97 percent, while services recorded a drop to 8.07 percent from 8.25 percent.

Inflationary pressure also varied between rural and urban areas. Rural inflation stood at 8.38 percent in September, compared with 8.26 percent in urban areas, suggesting that households in the countryside faced a slightly higher overall inflation rate.

The combination of rising prices and slowing wage growth has intensified the financial strain on ordinary households, particularly low-income earners who spend a larger share of their earnings on food and other basic necessities.