inflation and wage rate

Inflation remained untouchable

Point-to-point inflation of April 2026 recorded 9.04% at Bangladesh Bureau of Statistics. It was 8.71% in March and 9.13 percent in February.

 

Inflation was in upward trend since August 2022, after the beginning of Ukraine War. It remained above 8% since then. The highest inflation recorded in July 2025, when it reached 11.66% and lowest was 8.17 recorded in October 2025.

 

The Daily Star reported, inflation climbed back above 9 percent in April, reversing the easing seen in March and signalling renewed pressure from fuel price hikes and higher import costs amid the Middle East war. The newspaper also informed, the increase was driven by both food and non-food items. But non-food inflation rose more sharply to 9.57 percent in April from 9.09 percent a month earlier, indicating sustained increases in the costs of fuel, transport, and other services. Last month, food inflation edged up to 8.39 percent from 8.24 percent in March. Economists say, higher fuel prices, along with rising import costs, are behind the renewed price pressure.

 

Increase in fuel prices by 16% and transportation cost by 4.5% in April worsen price level in April. LPG price has increased by about 50% since the start of Iran War. There is no sign of ending Iran war. Global fuel markets and stock markets are trembling. No sign of stability in the global economic drivers are seen in the horizon. News outlets of the country are now talking about looming power tariff hike. The hike was expected since the increase in fuel price

 

Wage rate in April increased to 8.16% from 8.09% of March – 0.88% lower than the point-to-point inflation rate. Meaning, the nation become poorer by 0.88% just in one month. Since January 2024, the rate always remained below the inflation rate.

 

The only visible fight against the inflation was raising bank rate. Central bank raised policy rate to tame inflation. The key measure taken by the central bank in May 2022 after the beginning of the Ukraine war was to increase bank rate from 4.8% to 5%. Since then, the rate was gradually increased to 10% in September 2024. As the inflation was not raised because of excessive cashflow to the market, raising interest rates was not an arm to fight inflation, indeed.

 

Reducing demand for energy by reducing wastage and strict control of pricing, distribution channels, transportation, extortion and hoarding of essential commodities in local market are the arms to fighting inflation. No successive governments since 2022 succeed in these arenas.

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