People in rural areas were hit harder by food and non-food inflation than those in urban areas over the last two months, with the overall inflation surging to a 10-year high of 9.52 percent in August.

The knitwear segment has retained its position as the country’s biggest export earner in the readymade garment industry and among all the sectors of Bangladesh. 

Amid ongoing food and fuel crises worldwide, general subsidies are making a big comeback as a way of delivering social protection to the population. In fact, according to a World Bank tracker, the number of social protection measures introduced in response to rising inflation almost tripled globally between April and September 2022. More than a third of these were subsidies, including for fuel, food, fertilizers, and fees (such as for electricity, water and heating services).

A Bangladesh delegation will discuss a $4.5 billion loan with International Monetary Fund officials in Washington next week.

Inflation in some economies is rising at the fastest pace in four decades, while tight labour markets have boosted pay gains. That has raised concerns that these conditions could become self-reinforcing and lead to a wage-price spiral—a prolonged loop in which inflation leads to higher wage growth, fueling even higher inflation.

Bangladesh witnessed a record 9.5 percent inflation in August, the highest in 12 years, due to the adverse effects of fuel price hike, said Bangladesh Bureau of Statistics (BBS).

While the participants in the Ukraine war are spending billions of dollars each day on weapons and other destructive arsenals, millions of people and the leaders in South Asia and Africa are passing days in anxiety with rising external debt, a strong dollar, lingering supply chain disruptions, and food shortages.

The inflation didn't seem real, until now.

The amount by which the government has reduced the prices is so meagre – and so thoroughly insufficient to address the corresponding increase in the cost of living – that we can’t help but ask: Why even bother?

Basanti Bauri, 40, of Moulvibazar works for a renowned tea estate as a “plucker”. Her day starts at 5:00am sharp. After paying homage to the family deity, she prepares food for her three children and husband.

Inflation leads to the devaluation of a particular currency.

Inflation is the bad boy of economic phenomena. 

Congratulations to you, my dear countrymen, welcome to heaven. But wait, heaven is…dark? One might be forgiven for thinking that here in Bangladesh at the moment, as cyclical power cuts literally leave millions in the dark for hours, and fuel prices make others see stars. It might become cheaper to buy a vehicle than the actual costs of buying a week’s fuel for it on a consistent basis. So, get walking, go green, when better than now?

Take the recent and absurd fuel price hike, for example. The country's people are focusing on and monitoring how we, the citizens of Dhaka, will handle this situation so they can follow suit. To them, we say, “Hold my Borhani.” The fuel price hike gave an extra flare to the attitude of operators of CNG-run auto-rickshaws, Uber cars, and Pathao bikes, thus rendering the daily commute undesirable. Yet, most fail to grasp the opportunities we are presented with, such as being innovative and healthy. Power walking or riding your bicycle for commute is your divine solution.

Inflation is pinching our wallet. No matter how much you earn every month, the effect of high inflation is squeezing your purchasing power. People around the globe are now saving less than before, because it is becoming difficult for so many of us to just meet the necessary expenses; prices of gasoline, food, and housing are all soaring high. During this time of economic crisis, try becoming a smart shopper to mitigate the negative impact of inflation on your quality of life.

It seems that just as we recover from one crisis – the global pandemic – another one begins.

Rawhide was not being bought and sold at prices fixed by the government, but the market situation was fairly good compared to last year.

Norway and Sweden have joined the ranks of central banks opting for 50 basis-point interest rate rises, delivering their biggest policy tightening moves in two decades.

Inflation in Bangladesh rose to 7.42 per cent in May, the highest since 2014’s May.

The protruding question we’re left with is this: is the allocated sum for purchasing even merely enough to support our publishers in this grave time?