The people of Bangladesh are facing a severe economic crisis that has pushed many to the brink of survival. The continuous rise in the cost of living combined with stagnant wages and inadequate government response has created an alarming situation for middle and lower-income families. Essential goods, transportation, and housing have become increasingly unaffordable, leaving ordinary citizens struggling under an economic system that favours the wealthy minority, while the majority continues to suffer.
Officially, Bangladesh’s inflation rate was reported at 10.89% in December 2024, a slight decrease from 11.38% in November. However, this figure does not fully capture the extent of the crisis faced by everyday citizens. Inflation has made it increasingly difficult for families to make ends meet. The prices of essential food items, such as rice, lentils, edible oils, and vegetables, have surged, pushing many families to their limits.
A kilogram of coarse rice, once an affordable staple, now costs over 70 BDT, a sharp increase that has left numerous households struggling to feed their families. Additionally, the price of cooking oil has risen by more than 20% in just one year, further diminishing people’s purchasing power. Transportation costs have also skyrocketed due to rising fuel prices. Commuters, especially in urban areas like Dhaka, are now spending a significant portion of their monthly income merely to get to work.
Bus fares and rickshaw charges have dramatically increased, turning daily commutes into a financial burden for many. Public transport, which was once a relatively affordable option, is now out of reach for the most vulnerable citizens. Furthermore, rent prices have surged in both urban and rural areas, with landlords taking advantage of the crisis to raise prices to unaffordable levels, adding to the financial strain on families.
The current crisis in Bangladesh stems from a combination of global and domestic factors that have made life increasingly difficult for most of the population. The ongoing Russia-Ukraine war has significantly disrupted global supply chains, affecting the availability of essential commodities such as wheat, fuel, and fertilisers. As Bangladesh relies heavily on imports for these necessities, prices have surged as a consequence.
The Bangladeshi Taka has also depreciated sharply against major currencies, currently trading at Tk121.50 per US dollars. This decline has intensified inflationary pressures, as the costs of imported goods—including food, medicine, and fuel—have risen dramatically. The weaker Taka has made it more expensive for Bangladesh to import essential items, further driving up prices for the average consumer. Additionally, the energy crisis in Bangladesh, which is not new, has escalated over time.
Rising fuel prices, both globally and domestically, have increased production and transportation costs. This rise has impacted various sectors, from manufacturing to agriculture and retail. As energy costs spiral out of control, businesses are compelled to pass these expenses onto consumers, resulting in higher prices for goods and services.
Furthermore, one of the most concerning contributors to inflation in Bangladesh is market manipulation by syndicates and middlemen. These groups, motivated by greed, have been artificially inflating prices, particularly in essential sectors like food and fuel. With limited oversight and regulation, they have exploited the situation for profit, making basic necessities unaffordable for ordinary citizens.
The consequences of this economic crisis are far-reaching and devastating. Families, particularly those from lower-income backgrounds, are being forced to make impossible choices, often deciding between food and healthcare. With the prices of essential food items skyrocketing, many families have had to reduce their meal frequency or even skip meals altogether.
In rural areas, farmers who are already struggling with the effects of climate change and unpredictable weather are now facing exorbitant prices for fertilisers, seeds, and fuel. These rising costs, along with shrinking profits, are pushing farmers further into poverty.
Small businesses— the backbone of Bangladesh’s economy— are also feeling the pressure. Many are shutting down because they cannot keep up with the rising costs of materials and overheads, which leaves many people without jobs and exacerbates the country’s unemployment crisis.
For those in the informal sector, where daily wage earners depend on each day’s work to provide for their families, the situation is even bleaker. Many are losing work, and the inability to find clients is pushing them deeper into poverty without any safety net.
Even in Dhaka, the bustling capital, the effects of inflation are evident. Once-thriving streets are now filled with desperate individuals, including children begging at traffic signals. Families are skipping meals, and the sense of hope among the people is rapidly diminishing as they see no way out of this economic nightmare.
Despite the seriousness of the situation, the government’s response has been inadequate. While officials continue to assert that the situation is under control, the reality on the ground tells a different story. The Bangladesh Bank has raised the policy rate to 10% in the hopes of curbing inflation, but this measure has not provided any real relief for ordinary citizens. Rather than addressing the root causes of the crisis—such as currency depreciation, global economic instability, and market manipulation—the government has focused on short-term solutions that do little to alleviate the suffering of the people.
As policymakers debate potential solutions, the public continues to endure hardships. For many, inflation is not just an economic issue; it has become a humanitarian crisis that is tearing families and communities apart. The rising cost of living is an unbearable burden for millions of Bangladeshis, and if meaningful action is not taken immediately, the consequences will be devastating.
To prevent a complete social and economic collapse in Bangladesh, immediate and decisive action is essential. The government must implement stronger regulations to control the market and combat the activities of price-fixing syndicates. Comprehensive reforms in the energy sector are also needed to tackle the rising costs of fuel and energy.
To prevent a complete social and economic collapse in Bangladesh, immediate and decisive action is essential. The government must implement stronger regulations to control the market and combat the activities of price-fixing syndicates. Comprehensive reforms in the energy sector are also needed to tackle the rising costs of fuel and energy.
Additionally, providing targeted relief for low-income families, such as subsidies on essential goods or direct financial assistance, could offer vital support to the most vulnerable members of society.
The people of Bangladesh are watching and growing increasingly frustrated with the lack of action.Without swift and meaningful interventions, the economic crisis will only worsen, leading to potentially catastrophic long-term consequences for the country’s future.
Sohana Aktar Urmi is an undergrad student at Sylhet Agricultural University
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