Dhaka, Jan 21 (NationPress) The interim government of Bangladesh, under the leadership of Muhammad Yunus, has not fulfilled the hopes of the populace, who are now compelled to engage in stringent budgetary measures due to the dual crises of elevated inflation rates, stagnant wages, and a fabricated food scarcity, as reported by local media.

“When the interim government assumed office, there was considerable optimism,” stated an opinion article in Bangladesh's The Business Standard. “Eighteen months later, that optimism has diminished. Prices have not decreased. Inflation remains unchecked. Instead, it has become a persistent issue,” the article continued.

It noted that Dhaka’s local markets are less vibrant; consumers are purchasing fewer items and opting for cheaper alternatives as escalating prices strain household finances.

“The interim government came in with pledges of relief, and as its term draws to a close, the burden of daily expenses remains largely the same,” the article highlighted.

The current inflation in Bangladesh is not predominantly a result of excessive consumption, the publication argued, but is tied to supply-side limitations and deep-rooted structural deficiencies.

According to the Bangladesh Bureau of Statistics, the point-to-point inflation rate increased to 8.49 percent in December 2025, up from 8.29 percent in November.

Inflation has remained above 8 percent for 41 consecutive months; food inflation rose to 7.71 percent in December—the highest in seven months—while non-food inflation reached 9.13 percent, it reported.

In contrast, wage growth has not kept pace, with nominal wage increases recorded at 8.07 percent in December. For the 47th consecutive month, wage growth has trailed behind inflation.

“In real terms, earnings are dwindling. This disparity clarifies why markets appear subdued: individuals are not spending less voluntarily but rather out of necessity,” the report contended.

The article emphasized that inflation is primarily driven by supply-side challenges and structural issues rather than excess demand. The monetary tightening, with the central bank maintaining a policy rate near 10 percent for over a year, has failed to rectify broken supply chains.

Additionally, Bangladesh is grappling with import and banking constraints. In 2025, Letters of Credit (LC) settlements dropped by approximately 10 percent, while new LC openings decreased by over 4 percent.

Uncertainties surrounding the dollar, banking liquidity issues, and changing import regulations have made traders more cautious, leading to reduced imports and concentrated pricing power among a few large importers and wholesalers.

Even when global commodity prices have softened, local consumers have seen minimal benefits due to high transportation costs, inadequate logistics, middlemen profits, extortion, and businesses' expectations of future cost increases, the report noted.

Furthermore, although the country ostensibly produces enough food, a significant portion never reaches consumers.

Quoting figures from the Centre for Policy Dialogue (CPD), it stated that post-harvest losses total nearly 21 million tonnes of food annually. “This is not merely a minor inefficiency; it is a structural failure,” it asserted.

Moreover, Food and Agriculture Organization (FAO) statistics indicate that post-harvest losses for paddy and wheat are around 17.8 percent and 17.6 percent, respectively. For fruits and vegetables, losses vary from 17 percent to as high as 32 percent, with mango losses alone reaching 31.7 percent.

“Fisheries incur average losses of 12.5 percent due to inadequate icing and handling, with figures around 8 percent for milk, 13 percent for eggs, and nearly 17 percent for poultry,” the article added.

The lack of sufficient storage and cold-chain facilities contributes to the wastage of perishable goods. According to estimates from the World Food Programme (WFP), between 25–40 percent of fruits and vegetables, valued at roughly USD 2.4 billion annually, spoil before reaching consumers.

Thus, “food exists, but not where it is required.”

Overall, Bangladesh currently faces a paradox characterized by weak demand, constrained production, and limited supply, where prices refuse to decline.

“Businesses anticipate future uncertainties. Consumers bear the daily shock,” the article concluded.