Thinking Aloud: Volume IX, Issue 11: April 1, 2023

The theme of the April 2023 issue of Thinking Aloud is “Inflation in Bangladesh”. The first page article, “A difficult time for poor people” analyses the current uncertainty that poor people in Bangladesh are facing due to the erratic nature of commodity prices in both the domestic and international markets. The article notes that while the officially reported inflation rates are still high, there are concerns that the actual inflation rate might be much higher for low-income households. The article suggests that addressing the inflationary pressure and resultant food insecurity of the poorer households need to be the top priority now. The second and third pages of this issues presents the findings from SANEM’s survey on “Effects of inflation on the livelihoods of the poorer households in Bangladesh”. Set against the background of rising inflation, the study aimed to assess the impact of recent hike in food and non-food items on poor households in the urban and rural area. Additionally, the study explored how these households are coping with inflation—adjusting their expenditure, or managing resources. Also, the study looked into the poor households’ perception of the future, as in what situation these households are anticipating in the coming days and how they are planning to adapt to that scenario. The survey was conducted on 1600 households across 8 divisions, involving 800 urban and 800 rural households, between 9 and 18 March 2023. This survey has provided some unique insights into the current situation of the poor households, as it has compared the households’ current situation with that of six months ago—at a time when inflation had started to rise. As inflation brings great pressure on the poor households and have mid to long term impacts on all aspect of life, the government must act to tame the inflation pressure, expand the social safety net, strengthen market monitoring and address deep running institutional issues to build a more resilient economy. The fourth page showcases the events of February and March 2023.