Rising costs squeeze households as food prices surge

A steady rise in the prices of essential commodities is putting mounting pressure on households across country, with even middle-income earners struggling to maintain basic living standards.

Abdur Rahim, a businessman from Jatrabari, says the situation has become increasingly difficult despite a stable income.

“I have invested nearly Tk50 lakh in my wholesale business, and from this I earn around Tk40,000 to Tk50,000 per month,” he told The New Nation. “Even with this income, coping with the rising cost of daily necessities has become very hard.”

Rahim said he has already been forced to cut back on regular household spending.
“We’ve reduced our monthly market list and stopped buying several items we used to purchase regularly. Maintaining our previous living standard is no longer possible,” he said.

He also voiced concern for lower-income groups. “If someone like me is struggling, I cannot imagine how people with lower incomes are surviving. Their situation must be far worse,” he added.

Fuel price hike triggers chain reaction
Traders and market observers attribute the rising cost of goods to both global and domestic factors. Ongoing geopolitical tensions in the Middle East have driven up international commodity prices, while domestic fuel price hikes have further increased transportation costs.

Diesel prices were recently raised by Tk15 per litre, triggering a ripple effect across supply chains. Bus fares have increased by around 11 paisa per kilometre, while freight and cargo transport costs have surged repeatedly.

Traders say transport operators are now charging significantly higher rates, often citing fuel costs and market instability.

Analysts note that the diesel price hike has acted as a key driver of broader inflation. Higher fuel costs raise transportation expenses, which then push up the prices of nearly all goods and services.
As a result, essentials such as rice, pulses, edible oil, fish, meat, and vegetables are becoming more expensive simultaneously.

Inflation erodes purchasing power
Inflation has remained in the 8–9 percent range for several months, steadily eroding purchasing power.
Economists warn that consumers are now paying significantly more for the same products, placing increasing strain on household budgets across all income groups.

With the national poverty rate estimated at 21.4 percent, experts say rising inflation is worsening the situation. Lower- and fixed-income families are particularly affected, as a larger share of their earnings goes toward basic necessities.

Poverty risks deepen amid global uncertainty
The World Bank projects that around 1.2 million additional people in Bangladesh could fall into poverty due to global economic disruptions, including instability linked to the Middle East.

Those who were previously just above the poverty line are now at risk of slipping below it as fuel and living costs continue to rise.

International organisations have also raised concerns. A recent global food security report estimates that more than 15 million people in Bangladesh experienced severe food insecurity last year.

Market reality paints a grim picture
A visit to markets in Agargaon, Segunbagicha, Hatirpool, and Karwan Bazar reveals widespread price increases in essential goods.

Rice, lentils, flour, edible oil, sugar, and eggs have all become more expensive. Edible oil was selling at about Tk20 higher per litre even before official adjustments.

Despite the ongoing Boro harvest, rice prices have not eased. Medium and coarse varieties have risen further, while premium rice continues to sell at higher rates.

Flour prices have increased by around Tk5 per kilogram, while eggs are selling at about Tk130 per dozen.

Broiler chicken now costs Tk180–190 per kg, up from Tk150–160 during Ramadan, while golden chicken remains even more expensive.

Vegetable prices also remain elevated, mostly ranging between Tk60 and Tk80 per kg, with items like bitter gourd, cucumber, and pointed gourd at the higher end.

Official data confirms trend
Data from the Trading Corporation of Bangladesh (TCB) shows price increases across multiple essential items in recent months.

Coarse and medium rice prices have risen by around 7 percent, flour by 4 percent, sugar and lentils by 2 percent, and powdered milk by about 6 percent.

LPG price surge adds pressure
Household expenses have further increased due to sharp rises in LPG prices.
A cylinder that cost Tk1,341 in March rose to Tk1,728 in early April and then to Tk1,940 within the same month.

As a result, cooking costs alone have increased by around Tk600 in just 30 days, adding significant strain to already stretched household budgets.