The Rising Cost of Living in Bangladesh: Stories of Struggle and Survival

Understanding the Crisis

In Bangladesh, the cost of living has skyrocketed, leaving many families on the brink of financial despair. Fathers, mothers, and children alike are grappling with the escalating prices of food, housing, and other essentials. This article explores the pressing issue of rising living costs, underpinned by personal accounts and statistical insights.

Daily Struggles: Perspectives from Families

The Burden of Breadwinning

Fariduddin, a compounder at a pharmacy in Mirpur and a father of three, voiced a common plight: “It is getting harder to make ends meet nowadays. Each day, my income seems to shrink.” Despite receiving a raise last month, Fariduddin finds it insufficient to support his family of five. To tackle his financial obligations, he even borrowed Tk10,000 to help his eldest son secure a part-time job.

A Community in Debt

Khairul Mamun Mintu, an NGO employee from Savar, shared his own struggles, stating, “Three years ago, I had around Tk1 lakh in savings, but now I am burdened with debts of about Tk20,000 to Tk30,000.” His monthly expenses have drastically increased, forcing him to borrow money consistently to get through the month. With rising food, rent, and education costs, he struggles to make ends meet.

In rural areas, the scenario remains grim. Tahmina Parveen Shyamali, a woman entrepreneur from Bogura, reflects on how the surge in commodity prices has necessitated budget cuts in education and healthcare.

Nutritional Compromises

Ripa Sultana, a housewife from Naogaon Sadar, highlights a distressing trend: “I used to be able to buy fruits for everyone, but now I only buy for the children. We have almost given up eating meat.” Her family’s eight members feel the pinch of rising prices, foretelling a troubling reality.

The National Picture: Rising Poverty and Inequality

Shocking Statistics

Recent surveys from the Power and Participation Research Centre (PPRC) reveal that poverty has surged to nearly 28%, a significant leap from 18.7% in 2022. Extreme poverty has nearly doubled to 9.35%, with one in four citizens living below the poverty threshold. The economic landscape has become a harsh reality for many, as inflation, stagnant wages, and investment slowdowns contribute to this grim situation.

Economic Inequality: A Growing Divide

The national Gini coefficient, measuring income inequality, has alarmingly risen from 0.334 in 2022 to 0.436 in 2025. The poorest 10% of households earn just Tk8,477 a month, while the wealthiest 10% take home Tk109,390, highlighting a troubling wealth gap that continues to widen.

The Debt Trap: A Structural Crisis

The Rising Burden of Debt

On average, households now carry a debt of Tk189,033 — astronomically higher than their average savings of Tk130,728. Among the poorest, the disparity compounds, with debts of Tk62,767 overshadowing meager savings of Tk19,737. For many families, debts are no longer a means to invest but a necessary lifeline for survival.

Continuous Borrowing

Recent data reveals that nearly one-third of loans are utilized for everyday household consumption. As the poorest 40% of households have witnessed a net increase in debt of 7% over the past six months, borrowing has become a relentless cycle, trapping families in a web of financial dependency.

Employment Crisis and Income Inequality

Unemployment Woes

Employment rates reveal critical stress points — only 38% of respondents have jobs, with many only working part-time. Female labor force participation remains stagnant at 26%, well below regional averages. The precarious nature of many jobs exacerbates the plight of middle-income households, who now find themselves overspending.

The Result: A Hollowing Middle-Class

As the middle class faces increasing economic pressure — spending slightly more than they earn — the risk of eroding financial stability becomes stark. This shell of economic reassurance is further threatened by widespread income inequality.

The Role of Governance: A Call to Action

Need for Better Management

Experts, such as Dr. Syed Akhtar Mahmood and Professor Mustafizur Rahman, emphasize the urgent need for effective governance and economic management to tackle these crises. They argue that the government must implement policies that focus not just on macroeconomic stability but also on improving social safety nets, job creation, and controlling inflation.

Addressing the Root Causes

While it is tempting to lay blame on current government policies, the issues stem from a complex interplay of macroeconomic factors, compounded over years. The findings from the PPRC and the Bangladesh Bureau of Statistics should galvanize essential reforms.

Conclusion: Navigating a Difficult Future

The rising cost of living in Bangladesh presents an alarming challenge for millions of families. Fariduddin, Khairul Mamun Mintu, and countless others are caught in a dire cycle of debt, underlined by a stark divide between rich and poor. The path forward requires collective action, thoughtful governance, and robust community support to create a sustainable future for all.

By addressing these challenges head-on, we might pave the way for a more equitable society where every individual has the opportunity to thrive.