High inflation is taking a heavy toll on the daily lives of citizens, with the cost of running a household steadily rising. Essential commodities—ranging from rice, pulses, flour, oil, and vegetables to meat—must now be purchased at higher prices than before.
Low-income, ordinary citizens are struggling to cope with these additional expenses, forcing many to borrow money to run their households.
Over the last two months, the prices of fuel oils, including octane and petrol, have been hiked twice. The prices of liquefied natural gas (LNG) and electricity have also risen. Consequently, panic over a further surge in inflation has gripped limited-income earners once again.
Most recently, in May, inflation reached its peak in 16 months. Against this backdrop, economists and the general public expect the government to place the highest priority on curbing inflation in the upcoming budget.
Abdullah Al Mamun works in the administration and accounts department of a private firm. His current salary is Tk 45,000, which supports a family of four, including his wife and children. His salary was last increased by Tk 5,000 in January, following a three-year period without any increment.
Speaking with Abdullah Al Mamun, it was learnt that his household expenses have surged by Tk 10,000 to 12,000 over the past three to four years. Even two years ago, he could save Tk 1,000-2,000 after covering house rent, household expenses, and his children's education costs. However, due to the skyrocketing prices of commodities, he is no longer able to save anything.
“My salary has increased by Tk 5,000 in three years, but expenses have shot up by Tk 10,000 to 12,000. As a result, every month I am forced to dip into my savings and borrow money just to buy food,” Abdullah Al Mamun told Prothom Alo.
Numerous other middle-class families like Abdullah Al Mamun’s one are sharing the predicament.
Although food inflation stayed below 9 per cent, non-food inflation remained above 9 per cent for eight out of the 11 months of the current fiscal year. Current inflation is calculated on top of the high inflation bases of 2024 and 2025. Consequently, even though inflation is slightly lower now compared to two years ago, its actual pressure is much more severe.
The country has been grappling with high inflation for four years due to various factors, including the war in Ukraine, price hikes of various commodities, including fuel oil, on the international market, and political uncertainty.
During the tenure of the Awami League government, the inflation crisis was barely acknowledged. Although inflation eased slightly following various initiatives taken during the subsequent interim government, it continued to hover between 8.5 per cent and 9 per cent.
In the upcoming budget, the government is setting an inflation target of 7.5 per cent. However, questions have already been raised regarding how realistic it will be to bring inflation down to this target, given the manner in which the government is increasing the money supply across various sectors, including the reopening of closed factories.
M Masrur Reaz, Chairman of the private research institute Policy Exchange, told Prothom Alo that the cost of living has escalated due to four consecutive years of high inflation. Currently, the pressure of inflation is falling more heavily on lower-middle-class families.
Arguing that a further strain on living expenses could emerge due to the price hikes in electricity and fuel oil, he said, the primary objective of social protection in the budget should be to mitigate the pressures of inflation.
Masrur Reaz added that prolonged high inflation will lead to a devaluation of the taka, which in turn will drive up import costs. The size of the budget is expanding by around Tk 1.3 trillion (130,000 crore) compared to the previous year. This means that the flow of money will increase, posing a barrier to controlling inflation. Furthermore, achieving the mammoth revenue collection target will be quite challenging.
Experts suggest that inflation can be contained by preventing price hikes of manufactured goods through strict monitoring of the domestic market. If necessary, it is also crucial to devise market strategies to keep rice prices affordable.
Pointing out that the government will have to borrow heavily from the banking sector to deficit-finance the budget, which will stifle the flow of credit to the private sector, he stated that the momentum of the economy will be disrupted once again.
Meanwhile, according to the latest data from the Bangladesh Bureau of Statistics (BBS), inflation reached its highest level in 16 months in May. Last month, inflation rose to 9.42 per cent, making it the highest since February 2025.
During the first seven months of the current fiscal year (July–January), overall inflation remained below 9 per cent. However, the rate surpassed the 9 per cent mark in three of the last five months.
Although food inflation stayed below 9 per cent, non-food inflation remained above 9 per cent for eight out of the 11 months of the current fiscal year. Current inflation is calculated on top of the high inflation bases of 2024 and 2025. Consequently, even though inflation is slightly lower now compared to two years ago, its actual pressure is much more severe.
Commodities that have seen price hikes
Over the past year, the prices of almost all types of consumer goods—including rice, pulses, oil, eggs, fish, meat, and vegetables—have increased.
According to the Trading Corporation of Bangladesh (TCB), the price of coarse rice has increased by 5 per cent over the last year. Coarse rice can no longer be found for under Tk 50 per kg; it is currently retailing at Tk 52–56 per kg. The price of medium-quality BR-28 rice has increased by 6 per cent over the span of a year. At present, depending on the quality, BR-28 is being sold at Tk 54–68 per kg. Meanwhile, the price of fine rice, such as Nazirshail and Miniket, has increased by 2 per cent, selling at Tk 70–85 per kg.
According to the Ministry of Planning, rice currently contributes around 20 per cent to inflation, which is the highest for a single commodity. Therefore, any hike in rice prices exerts a greater impact on overall inflation.
Edible oil has also caused considerable suffering for ordinary citizens over the past year. There was a supply shortage of edible oil in the market for six to seven months. Although the government-fixed price per litre was Tk 195, consumers had to buy oil for over Tk 200 due to the crisis.
However, about a month and a half ago, the government increased the price of edible oil. A one-litre bottle of soybean oil now costs Tk 199, marking a price hike of Tk 10 over the span of a year. During the same period, the price of loose soybean oil increased by 15 per cent to Tk 185–190 per litre, while loose palm oil increased by 12 per cent to Tk 165–170 per litre.
In addition, general citizens have had to purchase vegetables at inflated prices throughout the year. Even during the peak winter season, no vegetable was available for under Tk 40 per kg.
Currently, vegetables such as aubergine, bitter gourd, sweet gourd, okra, pointed gourd, snake gourd, sponge gourd, ridge gourd, and yardlong beans cannot be found for less than Tk 70–80 per kg.
Real wages have declined
Inflation acts as a form of tax. Suppose someone spends their entire salary just to run their household; if commodity prices suddenly spike and their income does not increase accordingly, they must either run the household on credit or slash expenses. When wage or income growth falls behind inflation, the hardships of ordinary citizens intensify.
During the first 11 months of the current fiscal year (July–May), the national average wage rate never managed to outpace inflation. In that sense, the real income of the country's population has declined.
The highest wage rate among these 11 months was recorded this past May, when the national wage rate stood at 8.21 per cent. Over the last 11 months, the wage rate hovered around 8 per cent, fluctuating occasionally. However, the wages of ordinary citizens have not increased proportionally with inflation.
The BBS compiles this data by tracking the wages of 145 low-skilled occupations across both rural and urban areas. The BBS states that approximately 86 per cent of the country's workforce is employed in the informal sector, numbering around 60 million individuals. The uncertainty faced by this class of workers is significantly higher.
Experts suggest that inflation can be contained by preventing price hikes of manufactured goods through strict monitoring of the domestic market. If necessary, it is also crucial to devise market strategies to keep rice prices affordable.
Alongside this, the poor, who are the worst affected by the pressures of high inflation, must be shielded through the budget by providing them with cash and food assistance, they added.