Above14 key essentials and services have become costlier by 15-40 per cent just in last three months, biting a good portion on real income of millions of people, said market insiders.
Costly diesel, rocketing import costs followed by appreciation of US dollar and a war in the Europe are key reasons while market syndication here was fuelling up twinge further, according to experts.
Expenditure for staple rice and flour, both liquid and powdered milk, egg, transport and toiletries' reached a record high this August while sugar, fish, chicken meat, many vegetables (seven vegetables and green chilli), some spices (clove, cumin seed, onion, red chilli), pulses (anchor, lentil) also witnessed a notable hike during this period, according to Trading Corporation of Bangladesh (TCB), Department of Agricultural Marketing (DAM) and city groceries.
Rice prices hit all time high as coarse rice was retailed at Tk 56-58, medium at Tk 62-65 and finer loose at Tk 75-92 a kg and finer branded at Tk 84-Tk 98 a kg in the markets.
TCB data showed rice prices witnessed 10-14 per cent hike just in a month after the hike in diesel price by Tk 34 a litre on August 5 last.
The staple witnessed a 14-20 per cent total hike in last three months between May 27 and August 27, said TCB.
Finer flour or 'maida' also made a record this August as was selling maximum at Tk 74 kg while coarse flour or 'atta' at Tk 64 a kg.
Loose maida was selling at a record Tk 65 and loose atta at Tk 55 a kg in the market, according to government data.
Liquid milk hit an all-time high on August 25 as reached Tk 90 a litre marking a 15 per cent hike.
Powdered milk prices witnessed 18-20 per cent surge as Diploma and Dano branded milk were selling at Tk 790-810 a kg.
Anchor, a kind of broken imported chickpea price rose to record Tk 80-90 a kg marking 35 per cent increase in last three months.
Meanwhile, fish, lentil, powdered milk, sugar, vegetables, broiler chicken, toiletries, spices and transport fare witnessed 15-40 per cent hike.
Farm brown egg price reached an all-time high Tk 160-180 a dozen in between August 5 and August 18, later it declined.
Md Belayet, works at a bakery outlet in the city's West Dhanmondi, told the FE he earns Tk 22,500 a month from the shop to run his three-member family.
"My income increased by only Tk 750 or 3.5 per cent this January while family expenses witnessed at least 25 per cent in last few months," he said.
"My wife teaches two of the children from our neighbours and get Tk 6,000 a month," he said.
"After paying Tk 11,500 house rent for a tiny two-room flat at Buddhijibir Dhal area in Rayer Bazar, my wife and I just fight to survive in the city through calculation and austerity," he said.
"I have loans from two separate nearby cooperatives (locally known as Samity) now; my wife pays installments of those from her tiny income," he added.
However, the Bangladesh Bureau of Statistics (BBS) data shows that the wage rate fell compared to that of consumer price inflation in recent months.
The rate of nominal wage growth in July last was 6.56 per cent on a point-to-point basis although the rate of inflation stood at 7.48 per cent--a gap of nearly 1.0 percentage point, BBS data showed.
The June 2022 wage growth was 6.47 per cent on a point-to-point basis against the inflation of 7.56 per cent while in May, the same was 6.38 per cent against the inflation rate of 7.42 per cent, said BBS.
"The gap might increase further this August as prices of most of essentials have witnessed record hike", South Asian Network on Economic Modeling (SANEM) executive director Prof Dr Selim Raihan said.
Prof Raihan said the gap between the wage growth and the inflation rate has been widening where the rate of inflation is now higher than that of wage growth.
"The low and low-middle income have been losing purchasing power as the inflation was eating their real incomes," he said.
"These might lead to a rise in poverty further as well as it would affect the dietary intake, education, healthcare etc of millions of people", he said.
He said a hike in diesel price drastically by the Bangladesh government, appreciation of US dollar as well as the Russia-Ukraine war has been causing such tectonic surge in essential prices.
Consumers Association of Bangladesh vice president SM Nazer Hussain said the diesel price hike mainly has been affecting the whole value chain of the country -- value chain of both food and non-foods.
He said unscrupulous traders have also started cashing additional from the transport fare hike which has been proved in recent weeks by the government agencies themselves.
The government will have to review diesel price to its previous level immediately to avoid a possible famine, he said.
