For many, a simple trip to the market has turned into an ordeal. Prices of everyday essentials are soaring, and families across Bangladesh are struggling to balance their incomes with ever-increasing expenses. Inflation is eating away at household budgets, forcing many to dip into their savings just to get by. The dream of setting money aside for the future feels increasingly out of reach.

However, even during these tough times, it's crucial to keep the idea of saving alive. With careful planning, it's still possible to safeguard your financial future, even when the present is uncertain.

The impact of inflation is clear in the latest Bangladesh Bank data. Between July and November of the current fiscal year (FY25), net investment in savings certificates stood at Tk1,677 crore. However, just two months earlier, in September, this figure was Tk8,333 crore. The drastic fluctuation signals growing financial distress, with people increasingly relying on their savings to make ends meet.

The struggle to save

Experts warn that persistent inflation is making it harder for people to save. The Bangladesh Bureau of Statistics (BBS) reported that in December 2024, the country’s inflation rate hit 10.89%, with food inflation soaring to 12.92%. When the cost of basic necessities spirals out of control, saving money can feel like an unattainable goal.

Yet, it's important to remember that even small amounts of saving can have a big impact over time. Setting aside just a portion of what remains after essential expenses could help build a buffer for unexpected expenses or future opportunities.

November alone saw a worrying trend – net investment in savings certificates dropped by Tk3,431 crore, meaning more people withdrew their savings than invested. Yet, the first three months of FY25 showed a surprising surge in sales. In July and August, net sales of savings certificates stood at Tk2,187.56 crore and Tk2,036.15 crore, respectively. By September, this number had almost doubled to Tk4,109.09 crore. It appears that in times of uncertainty, many seek the security of government-backed savings instruments – but for how long?

Why are people struggling?

Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, explains that inflation and political instability have left households financially strained.

“In times of inflation, people face immense pressure. Over the past six months, political unrest has only worsened the situation, forcing many to rely on their savings just to survive,” he told the Daily Sun.

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), points to food inflation as a key driver of the crisis.

“Despite efforts to control inflation, the prices of essentials remain stubbornly high due to inefficiencies in the system and the unchecked influence of cartels,” she said.

A recent CPD report titled “Bangladesh Economy 2024-25: Challenges in Meeting Expectations amid Crisis” highlighted major causes of inflation. Poor storage and transportation, unpredictable weather, and a flawed supply chain were all identified as major factors.

The report found that hoarding, the dominance of commission agents, and inefficient agricultural practices were contributing to price volatility.

Everyday costs are skyrocketing

The price of everyday goods tells the real story. Rice, a staple in Bangladeshi households, is now significantly more expensive than its Thai and Vietnamese counterparts. By mid-2023, Thai and Vietnamese rice cost between Tk55-70 per kg, while Bangladeshi Nazirshail, Miniket, and Pajam varieties ranged from Tk70-80 per kg.

Other essentials have seen similarly sharp price hikes. In December 2024, soybean oil was priced at Tk128 per litre globally, but Bangladeshi consumers paid Tk168 per litre. Sugar was even worse – in the EU, it cost Tk41 per kg, while in Bangladesh, it soared to Tk126 per kg. Even beef, a luxury for many, was selling for Tk775 per kg locally, compared to Tk748 per kg in the global market.

What’s next for savers?

With inflation showing no signs of slowing down, the economic outlook remains bleak for millions of Bangladeshis. Unless meaningful steps are taken to stabilise prices and fix supply chain inefficiencies, the financial burden on households will only worsen.

That said, now more than ever, saving money – however small – is vital. It may be difficult, but small sacrifices today could lead to greater financial security in the future. Consider automated savings, reducing non-essential spending, or investing in higher-interest savings accounts to maximise the return on what you save.

For now, many are left with a difficult choice – dip into their savings to survive or take on debt to keep afloat. But the uncertainty surrounding inflation is also a reminder that it’s crucial to continue saving.

The culture of saving, once deeply ingrained in society, must not be permanently eroded. Even during hardship, cultivating the discipline to save can be one of the most powerful tools for long-term financial well-being.

As things stand, savings are no longer just about securing a better tomorrow – for many, they’ve become a lifeline for surviving today. But by saving, even in small amounts, we can still protect our financial future.