Independent economic reviews and official data reveal a widening gap between earnings and spending among low-income individuals, exacerbating the wealth disparity between the super-rich and the ultra-poor in Bangladesh. This income disparity, coupled with overconcentration of wealth, has led to a rapid decline in purchasing power for those in the limited-income group, who are often the breadwinners for their families. Economists warn that this trend may result in negative consequences such as increased poverty rates, education dropouts, and malnutrition.
According to the latest publication from the Bangladesh Bureau of Statistics, the nominal wage growth in May 2023 fell short of consumer-price inflation by 2.62 percentage points. While the Rangpur division experienced higher wage-rate growth, the Dhaka division, including the capital city, had the slowest pace of growth. Economists suggest that the eroding purchasing power of the poor due to inflation may lead to increased poverty rates and malnutrition. They recommend government support measures such as utility bill subsidies and expanded social protection programs to alleviate the impact of rising prices on the limited-income group.
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