In February, Bangladesh’s overall inflation rate dropped to 9.32%, the lowest in 22 months. While this might seem like a positive development, the reality for low and middle-income families remains grim. Their real incomes are shrinking, and their purchasing power is eroding, leaving them in a precarious position.

Experts point out that when inflation outpaces wage growth, real incomes inevitably fall. According to the latest data from the Bangladesh Bureau of Statistics (BBS), while inflation stood at 9.32% in February, wage growth was only 8.12%. This means that despite nominal wage increases, workers are effectively earning less than they did a year ago.

The situation is worsening. In January, wage growth was 8.16%, but by February, it had dipped further to 8.12%. This decline in wage growth, coupled with persistently high inflation, has pushed millions below the poverty line. Research and Policy Integration for Development (RAPID), a private research organization, estimates that a significant portion of the population has fallen into poverty between 2022 and 2024, with an additional 10 million at risk of joining them.

Middle Class Feels the Pinch

Mustafa K. Mujeri, Executive Director of the Institute for Inclusive Finance and Development and former Chief Economist of the Bangladesh Bank, highlighted the broader impact. “Even though inflation has slightly decreased, it has remained close to 10% for a long time. Meanwhile, wage growth has been consistently lower than inflation. This is not just affecting the lower class; the middle class is also seeing a steady decline in their purchasing power,” he said.

Mujeri added that many families are depleting their savings to cope with rising costs, leaving them financially vulnerable. The desperation is evident in the long queues forming behind Trading Corporation of Bangladesh (TCB) trucks, where people scramble to buy essential goods at subsidized prices.

TCB Truck Lines: A Symbol of Desperation

A viral video on social media shows crowds of men and women chasing moving TCB trucks in Dhaka, hoping to buy affordable essentials. In the scorching heat, fasting during Ramadan, these individuals are running after trucks to secure basic items like edible oil, lentils, sugar, chickpeas, and dates.

TCB spokesperson Humayun Kabir explained that the organization has doubled the number of trucks to meet demand during Ramadan, increasing from 200 to nearly 400 nationwide. Despite this, the supply is insufficient to meet the overwhelming demand.

In Mirpur, a woman waiting in line for a TCB truck shared her plight anonymously. Her husband’s salary from a private company barely covers rent, their children’s education, and other expenses. “We’re here to save a little money,” she said, echoing the struggles of countless low-income families.

A Call for Human-Centric Solutions

Mujeri criticized the current approach, stating that the chaotic scenes at TCB trucks are inhumane and exacerbate the suffering of already struggling families. “The government must take more humane initiatives. Simply relying on truck sales to manage the situation is not sustainable. Real income growth must be prioritized to address the root of the problem,” he emphasized.

As inflation continues to outpace wages, the gap between the haves and have-nots widens, leaving millions in a relentless struggle for survival. The long lines behind TCB trucks are a stark reminder of the urgent need for comprehensive economic reforms to restore the purchasing power and dignity of Bangladesh’s working class.