Per Capita Income Rises in Local Currency Despite Drop in US Dollar Value

The poverty rate in Bangladesh has increased to 20.5% from 18.7% over the last two years, driven by widening economic inequality. Marginalized communities face growing challenges in accessing resources, while their livelihoods are increasingly threatened. These concerns were highlighted at a national meeting organized by the SDG Action Alliance and the Noakhali Rural Development Society (NRDS), supported by the Global Call to Action Against Poverty (GCAP). Factors contributing to this rise include job losses, environmental pressures, and limited social pr

The interim government plans to review workers' wages through the minimum wage board in an effort to restore stability in the industrial sector. A government official stated that discussions on wage revisions will involve tripartite consultations between the government, factory owners, and labor unions. Although the current minimum wage was set in December last year, rising inflation and essential costs have prompted a reevaluation.

The wage growth for low-paid and unskilled workers has declined to 7.93% after nearly 30 months of consistent increases. Meanwhile, the inflation rate has surged to 11.66%, the highest since 2012, according to the Bangladesh Bureau of Statistics (BBS). This has resulted in the largest gap between wage growth and inflation in recent history, with a difference of 3.73 percentage points. The situation is particularly dire as food inflation now exceeds 14%, the highest in a decade.

The wage growth for low-paid and unskilled workers has declined to 7.93% after nearly 30 months of consistent increases. Meanwhile, the inflation rate has surged to 11.66%, the highest since 2012, according to the Bangladesh Bureau of Statistics (BBS). This has resulted in the largest gap between wage growth and inflation in recent history, with a difference of 3.73 percentage points. The situation is particularly dire as food inflation now exceeds 14%, the highest in a decade.

Bangladesh has experienced a decrease of 6.13 million people below the poverty line due to healthcare expenses in 2022, according to a BIDS report released. The country now has the second highest out-of-pocket healthcare expenditure in South Asia, following Afghanistan.

Wage growth for low-paid and unskilled workers in Bangladesh rose by 7.95% in June, but fell short of the 9.72% inflation rate, marking a 29-month trend. This disparity has forced cuts in consumption as real incomes decline. Despite slight dips, food inflation remains high, hitting 10.42% in June after a peak of 12.56% in October 2023. Analysts warn of rising poverty rates and call for adjustments to wages to match inflation. The impact on employment and demand underscores the need for enhanced social safety nets and support for vulnerable urban populations.