Anas Ahmed works for a private company and earns Tk54,000 a month. He lives with his family and pays Tk20,000 in rent. Gas cylinders, water and electricity cost another Tk5,000, while installments for an iPhone he bought six months ago take up Tk5,500.
Because the metro does not serve his route to work, Anas usually travels by motorcycle, spending Tk7,000–Tk8,000 a month on fuel and transport. Groceries cost another Tk5,000–Tk7,000.
These expenses alone account for up to Tk45,000 of his salary, leaving a little for other family needs and unexpected costs.
Anas tries to save Tk5,000 a month, but regular expenses often force him to use that money. By the 25th, he is frequently out of cash. He sometimes borrows Tk5,000–Tk10,000 through a mobile financial service to get through the remaining days. The three-month loans carry interest, and repaying them from his next salary puts further pressure on his budget.
"Costs rise every day, but salaries do not," he said. "The company may give us a yearly pay rise of Tk2,000 to Tk4,000. But that does not keep up with rising costs."
Niloy, who also works for a private company, echoes the same concerns. "Costs are rising so fast that I have to think about earning extra money alongside my job," he said. "But I struggle to find the time or the chance to do so."
Anas and Niloy are not alone in facing these challenges. Rising living costs make it harder for many salaried employees in Dhaka to save, forcing some to borrow money to cover their expenses.
The country's inflation figures show how prices continue to rise. Data from the Bangladesh Bureau of Statistics (BBS) show that overall inflation stood at 8.34% in September 2026, up from 8.26% in August. Food inflation rose from 7.02% to 7.22%, while non-food inflation edged down from 9.32% to 9.3%.
Average inflation over the 12 months to September 2026 was 8.65%, compared with 9.45% in the preceding 12 months. A falling inflation rate does not necessarily mean falling prices, it means prices are rising more slowly. Households therefore continue paying more for goods and services than they did before.
Mahtab Uddin, assistant professor of Economics at the University of Dhaka and Honorary Research Director at the South Asian Network on Economic Modelling (SANEM), believes Bangladesh's inflation problem must be understood in the context of its monetary and fiscal policy decisions.
"While countries such as Britain and India raised interest rates to contain inflation, Bangladesh failed to tighten monetary policy sufficiently or at the right time," he said. "Continued liquidity support for distressed banks and expansionary fiscal policy added to inflationary pressures."
Bangladesh's weak tax collection and substantial expenditure on large development projects also contributed to fiscal pressure, according to Mahtab. These structural factors made it harder to control inflation even as households struggled with rising prices.
When households are forced to cut back
The consequences are particularly severe for lower-income households, which spend a larger share of their earnings on necessities.
"When prices rise and real wages fail to keep pace, people are forced to make difficult choices," Mahtab said, "Families may stop buying fish, meat or fruit, switch to less nutritious food or reduce spending on their children's education."
Such adjustments can have consequences beyond the monthly budget, affecting nutrition, education and long-term economic mobility. For households already struggling to cover essentials, there may be little discretionary spending left to cut.
The pressure also depends on how much a family spends on essentials such as food, rent and transport. When these costs absorb most of its income, there is little left for savings or unexpected expenses.
Wages have also struggled to keep pace with prices. According to the BBS Wage Rate Index, national wage growth was 7.9% in September 2026, below overall inflation of 8.34%. The gap was 0.44 percentage points.
In Britain, teachers, doctors and railway workers have used organised action to demand better pay. In Bangladesh, many workers, including white-collar employees, lack similar bargaining power. When labour supply exceeds demand, negotiating pay rises that keep pace with living costs becomes even harder.
Mahtab Uddin, Assistant Professor, Department of Economics, University of Dhaka
The figures do not mean every worker has lost purchasing power, as individual pay rises and household spending patterns differ. But they indicate that, on average, wages have not kept up with rising prices, making it harder for many households to improve their financial position.
The vicious cycle of borrowing
The problem extends beyond salaried workers. Students who depend on family support also face pressure from transport and daily expenses.
Abdullah Al Mahmud, a private university student, spends at least Tk200 a day on fuel for his motorcycle commute. A round trip by metro costs Tk240, leaving him to weigh the costs before deciding how to travel.
Mahmud often hears friends say they borrow money towards the end of the month and repay it once their salaries arrive, leaving them short again the following month and forcing them to borrow again.
Mahtab argued that weak collective bargaining also limits workers' ability to negotiate higher wages.
"In Britain, teachers, doctors and railway workers have used organised action to demand better pay. In Bangladesh, many workers, including white-collar employees, lack similar bargaining power. When labour supply exceeds demand, negotiating pay rises that keep pace with living costs becomes even harder," he noted.
Not every budget shortfall comes from rent or other major bills. A hangout at restaurants, regular travel, online shopping and small discretionary purchases can also add up. Spending Tk100 a day without tracking it amounts to Tk3,000 over a month.
But cutting unnecessary expenses is only part of the solution. For a large number of people, the bigger challenge is finding ways to increase their income in an economy where suitable jobs remain scarce.
The International Monetary Fund (IMF), in its October 2026 issue of Regional Economic Outlook for Asia and the Pacific, reported that nearly 29% of highly educated young people in Bangladesh are unemployed. The report also warned that AI could exert downward pressure equivalent to 2% of aggregate labour demand in Bangladesh.
These challenges point to a broader problem. While rising living costs, limited job opportunities and potential changes in labour demand could make it harder for people to improve their financial situation.
Budgeting: One piece of the puzzle
Mumitul Mimma, a journalist in Dhaka, says recording her expenses helped her understand where her money was going.
"I used to spend carelessly and struggle by mid-month. So I started keeping a spending diary, recording everything from transport fares to cups of tea. It helped me track where my money went and plan my spending better."
Tracking expenses can help people identify unnecessary spending and plan their budgets more realistically. But it does not solve the economic problem. People who spend almost all their income on food, housing, healthcare and family needs may have little room to cut costs.
This is where money management or personal finance comes as a crucial skill.
Setting aside money as soon as a salary arrives makes saving easier than waiting until month-end. A separate savings account, automatic transfer or monthly deposit scheme can help build the habit. Tracking expenses and keeping an emergency fund can also reduce the need to borrow.
"Whatever the cost of living, managing within your income takes skill. Even with today's high prices, many people are getting by on much less than you earn," said Manjura Akter, a teacher at Mohammadpur Government High School.
She recommends saving from the beginning of the month and planning expenditure around essential needs. A monthly savings scheme, such as a deposit pension scheme (DPS), may help people build discipline, while an emergency reserve can reduce pressure when unexpected costs arise.
However, budgeting has its limits. When income is insufficient to cover basic expenses, saving may simply be impossible. For households already struggling with rent, food and transport, the challenge is not only how to manage their money, but also whether their income can keep pace with the cost of living.