Monthly food expense rises 51% in four years: CPD
The average monthly food expense for a four-member household in Dhaka has increased by up to 51 per cent over the past four years due to persisting high inflation, according to a study by the Centre for Policy Dialogue (CPD).
Even if the family refrains from eating meat or fish for a whole month, they would have to spend at least Tk 7,131 on food as of this February, up 51 per cent from the same month in 2019, it said.
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If the family does include fish and meat in their diet, they would have to spend around Tk 22,664 as of this February, up 44 per cent from Tk 15,705 four years ago, the CPD added.
"Compared to last year, a family now has to spend a further 25 per cent only on food expenses, which is difficult for minimum wage earners," said Syed Yousuf Saadat, research fellow of the CPD who conducted the study.
"The way food expenses have increased by 25 per cent in the last one year, no one's salary or wages has actually increased to such a level, unless he/she got a huge promotion," he added.
Saadat then said the CPD calculated the data based on the "Bangladesh Urban Socio-Economic Assessment Survey" of the Bangladesh Bureau of Statistics (BBS), where they accounted for the amount of food each person consumes every day.
The average cost of purchasing 19 essential consumer goods, including rice, pulses, oil, sugar, flour, salt, fish and meat, were calculated under the survey.
Usually, a minimum wage earner gets a 5 per cent increment annually, but when expenses increase by 25 per cent in just a year, it forces them to compromise their diet.
"Even if two of a four-member family earn minimum wage, they will still face difficulty to eat a regular diet along with purchasing non-food items," Saadat said.
He suggested the concerned authorities consider increasing the minimum wage in all industries so that minimum wage earners can at least afford basic food.
Khondaker Golam Moazzem, research director of the CPD, said the living standard of fixed or limited-income groups has been badly disrupted by recent inflation as their real income has eroded.
Over the past four years, peoples' wages did not increase by more than 6 per cent annually.
And due to the rising cost of living, low and minimum-income groups are also gradually compromising on their needs.
"If the situation continues, they may have to take more stern decisions, such as returning to their village homes or sending their children to work," he added.
The economist also sees the possibility of job cuts if the situation becomes worse.
With this backdrop, the government should continue providing stimulus to small-and-medium enterprises to help them survive the difficult time.
"It should also extend the scope for direct cash assistance programmes for low-income groups," Moazzem said.
In a recent budget proposal for the next fiscal year, the CPD said although the prices essential food items have decreased in the international market, they have yet to fall in Bangladesh.
"Not only the price of imported products, but also that of local products are on the rising trend," it added.
The think-tank also revealed that at least 28 imported essential food items currently face a high incidence of tax.
Considering the soaring inflation, the National Board of Revenue should reduce the duties and taxes on these essential commodities to provide some respite to consumers with low or limited income.
"If the taxes on the 28 products were reduced, people would get some relief," the CPD said.
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