‘Yunus-led B’desh interim government fails to curb inflation amid food and wage crisis’

Bangladesh interim administration led by Muhammad Yunus has failed to meet the expectations of the people who are forced into a budgetary belt-tightening under the combined effects
Muhammad Yunus
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Dhaka: Bangladesh interim administration led by Muhammad Yunus has failed to meet the expectations of the people who are forced into a budgetary belt-tightening under the combined effects of high inflation rates, low wages, and an artificial food scarcity, the local media has highlighted.

"When the interim government took charge, expectations were high," according to an opinion piece in Bangladesh's The Business Standard. "A year and a half later, that hope has thinned. Prices have not come down. Inflation has not been tamed. Instead, it has settled into a kind of uneasy permanence," it added.

It described Dhaka's wet markets being quieter; shoppers buying less, going for cheaper items as rising prices squeeze household budgets.

"The interim government came with promises of relief, and now, as its tenure nears its end, the weight of daily expenses feels largely unchanged," stated the article.

Bangladesh's current inflation is not primarily driven by excess consumption, the newspaper insisted, but rooted in supply-side constraints and deep structural weaknesses.

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

Inflation continued above 8 per cent for 41 consecutive months; food inflation climbed to 7.71 percent in December - highest in seven months - while non-food inflation reached 9.13 percent, it quoted.

Meanwhile, wages failed to keep pace, where in December, nominal wage growth stood at 8.07 percent. And for the 47th straight month, wage growth lagged behind inflation.

"In real terms, incomes are shrinking. This gap explains why markets feel subdued: people are not spending less by choice, but by necessity," argued the report. (IANS)

Also Read: Bangladesh political parties turn up heat on Yunus regime over election fairness

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