The Rising Cost of Living: A Struggle for Survival in Bangladesh

In Bangladesh, the cost of living has surged dramatically over the past few years, leaving many families grappling with financial hardship. Everyday individuals, from urban workers to rural farmers, are facing increasingly challenging circumstances as they strive to provide for their families amidst rising consumer prices and stagnant incomes.

The Personal Impact of Economic Strain

A Father’s Dilemma

Fariduddin, a compounder at a pharmacy in Mirpur, is indicative of the widespread struggle. As a father of three, he faces a daunting task: feeding his family of five. “It is getting harder to make ends meet nowadays,” he shares. Despite receiving a raise last month, the increased income barely scratches the surface of his family’s expenses. In desperation, he borrowed Tk10,000 from his employer to help his eldest son secure a part-time job, demonstrating the lengths families will go to survive.

Burden of Debt

Khairul Mamun Mintu, an NGO employee from Savar, echoes Fariduddin’s sentiments. With rising living costs, his debts have ballooned to Tk20,000–Tk30,000. Once able to save Tk8,000–Tk10,000 monthly from his Tk35,000 salary, Mintu now struggles to make ends meet, often forced to borrow to cover his family’s basic needs.

Rural Struggles

Even rural communities feel the pinch. Tahmina Parveen Shyamali, a woman entrepreneur from Bogura, laments the inflating prices that have constrained her household budget. Compromises extend to health care and education, now prioritized over other essential expenses.

Ripa Sultana, another rural resident, reveals that her family’s nutritional standards have drastically declined. “We can no longer afford meat regularly and have reduced our fruit purchases to only what the children need.” Such sacrifices resonate across Bangladesh.

Nationwide Consequences

Alarming Poverty Rates

Statistics from the Power and Participation Research Centre (PPRC) reveal a troubling trend: poverty in Bangladesh has escalated to nearly 28% from 18.7% in just a year, while extreme poverty has doubled, affecting 9.35% of the population. The survey indicates a stark reality: one in four citizens is now below the poverty line, while a further 18% is vulnerable to slipping into poverty.

Causes of Economic Decline

Inflation and Wage Stagnation

According to Professor Mustafizur Rahman of the Centre for Policy Dialogue (CPD), inflation, along with stagnant wages and investment, has intensified the financial crisis. Despite a nominal salary increase, the real cost of living has risen exponentially, leaving many families grappling with financial insecurity.

The Growing Debt Crisis

Household debts have spiraled into a structural crisis, now averaging Tk189,033, far exceeding average savings of Tk130,728. For the poorest families, debts average Tk62,767 against minimal savings. These debts often fund necessary household expenses rather than investments, indicating a troubling dependency cycle.

Employment and Inequality

Unemployment Rates

The employment figures reveal another layer of distress, with only 38% of respondents reporting stable jobs. Female labor participation is particularly low at 26%, while most workers engage in precarious self-employment without a safety net.

Deepening Income Inequality

Simultaneously, wealth concentration has escalated, with the wealthiest households accumulating substantial savings even in the face of inflation. In stark contrast, middle-income families are increasingly living paycheck to paycheck, spending more than they earn.

Navigating Economic Challenges

The Role of Government

Experts argue that while the government has focused on macroeconomic stability, immediate actions are required to address inflation and its impacts on the poorest households. Dr. Akhtar Mahmood emphasizes the necessity of targeted policies that bolster household resilience during economic downturns.

Future Recommendations

To alleviate these challenges, experts suggest improving market management, prioritizing social safety nets, and generating employment opportunities. Government action needs to reflect an understanding of the ground realities faced by families across the nation.

Conclusion

The stories of individuals like Fariduddin and Khairul Mamun Mintu illustrate the broader socio-economic crisis unfolding in Bangladesh. With the cost of living outpacing income growth, the implications for families are severe—debt cycles deepen, nutritional standards decline, and future opportunities diminish. Addressing these challenges requires urgent and comprehensive action from policymakers, along with a commitment to fostering economic pathways for all citizens.

This article offers an overview of the mounting economic pressures facing families in Bangladesh, emphasizing the necessity for awareness and proactive measures to counteract growing poverty and inequality.