Bangladesh News

The lower middle class and the middle class people of the country are suffering the most due to the staggering price hike of essentials.

A recent study shows that expenditure for daily necessities increased by almost 17 percent in 2007 in comparison to the previous year.

A large number of people of these groups are now almost buried under debt with some having to discontinue their education and look for jobs in order to survive. Some are even looking for their second or third job as the money from one pay cheque is proving to be inadequate.

Shaheed Ullah, an electric goods trader of Karwan Bazar in Dhaka, claimed the expenditure for his six-member family has increased by half in one year. He said he used to spend Tk 10,000 a month a year ago and now it is almost Tk 15,000. He said he had to take money out of his business to make both ends meet.

“Even that was not enough and I am now thinking about dropping my eldest daughter out of school as I cannot afford her education anymore… I have to let her work without finishing her education,” Shaheed said.

Mazharul Islam, an employee of a fish wholesale store in the same area, said he earned Tk 4,000 a month from the store and had to support his wife and son with it. Being unable to run the family with the money he took a second job at another shop which pays him Tk 3,000.

“Despite doing a second job, I cannot provide for the family and my wife has to borrow money from my in-laws every month. The price hike of essentials has also pushed house rents up in Dhaka,” Mazharul said.

Almas Hossain of Daudkandi, Comilla, who works at a renowned cloth shop in the capital, said, “I earn Tk 6,000 a month which is very small if you are providing for a seven-member family… I sunk into deep debt in early 2007. I was forced to send my two daughters to a garment factory to work in mid-2007. They were supposed to take the SSC exams this year.”

Prof Atiur Rahman of Department of Development Studies of Dhaka University said, “People who spend as much as they bring in and do not have to struggle too hard to make both ends meet are middle class people. The people who have to struggle hard to run their families and have to sacrifice a number of essentials to make it to the end of the month are lower middle class people. Due to the extraordinary price hike of essentials recently, a number of middle class families have been temporarily pushed into the lower middle class. Some of them are even suffering from malnutrition due to sacrifices in food intake they are making to survive.”

He said if the prices are not brought down or their earnings increase their downgrading could become permanent.

He said, “It is a matter of worry that the middle class and the lower middle class in some cases are cutting corners by not taking proper medical care.”

Consumer Association of Bangladesh (Cab) in a study published on December 31, 2007 said lifestyle expenditure of people has increased by 16.78 percent in 2007. Year 2006 had an increase of 13.52 percent.

It said prices of consumer goods increased by 18.92 percent in 2007 while it was 15.22 in 2006.

The association said the price of rice increased by 35 percent in 2007, edible oil 63.12 percent, flour 56.94 percent, pulses 26.60 percent and milk products 27.45 percent.

House rents also increased by 21.48 percent in 2007 while transportation costs increased as price of fuel increased by 21.80 percent on average.

General Secretary of Cab Quazi Faruque told The Daily Star that the prices of some goods, which had seen a significant rise in 2007, increased in similar measure during the month of January, 2008.

The prices of different kinds of rice, edible oil, and flour increased between Tk 7 and Tk 10 a kg in that month, he said.

He said the middle class and the lower middle class people are showing signs being incapable of dealing with the sudden price hike of essentials. The poor are trying to deal with it a little better probably since they are more used to struggles, he added.