Archive · 16 Aug 2026
Bangladesh's Middle Class Struggles as Living Costs Erode Financial Cushion
Many families in Bangladesh are finding it harder to pay for everyday things like food, electricity, rent and transport.
Prices keep going up, which is called inflation, and people's pay is not rising as fast.
The government raised the prices of fuel, power and cooking gas after a war started in Iran in February.
That made electricity and other energy bills more expensive.
One woman in Dhaka was shocked when her electricity bill was over Tk 3,000, even though she used less power than before.
Food prices are also going up, especially for meat, fish, fruits, vegetables and spices.
Because everything costs more, families have less money left to save.
Some families are skipping doctor visits, delaying school payments or borrowing money just to get by.
The banks and experts say this is a serious problem for people's budgets.
A Daily Star report says Bangladesh's middle-class households face high inflation, rising energy costs and stagnant real incomes that erode purchasing power and savings.
The government raised prices of fuel, power and liquefied petroleum gas (LPG) after the Iran war began in February.
Bangladesh Bank reported average headline inflation rose to 9.21 per cent in the fourth quarter of fiscal year 2025-26, with energy inflation as the main driver.
Food inflation accelerated to 8.7 per cent in June, driven by sharp rises in prices of meat, fish, fruits, vegetables and spices.
Many families are cutting discretionary spending, postponing healthcare and education, switching to cheaper goods, or borrowing to maintain basic living standards.
- Who
- Bangladesh's middle-class households, including Rezwana Rahman of Dhaka's Mohammadpur area; report by The Daily Star, with data from Bangladesh Bank and warnings from the Centre for Policy Dialogue (CPD).
- What
- Middle-class households are struggling as high inflation, rising energy costs and stagnant incomes erode their purchasing power and savings.
- When
- Reported for the fourth quarter of fiscal year 2025-26, with food inflation data through June; fuel, power and LPG prices were raised after the Iran war began in February.
- Where
- Bangladesh, particularly Dhaka.
- Why
- Government price hikes on fuel, power and LPG following the Iran war, combined with elevated food inflation and stagnant incomes, have squeezed household budgets.
- Headline inflation
- 9.21 per cent (Q4 FY 2025-26)
- Main inflation driver
- Energy inflation (per Bangladesh Bank)
- Food inflation (June)
- 8.7 per cent
- Food inflation (March)
- 8.24 per cent
- Food inflation (December, previous year)
- 7.71 per cent
- Example electricity bill
- Exceeded Tk 3,000 for a two-bedroom Dhaka flat despite lower usage
- Items with raised prices
- Fuel, power and liquefied petroleum gas (LPG)
- Report source
- The Daily Star