Abstract:
Bangladeshis’ are now finding it difficult to survive with their income-level which is grossly
mismatching the prices of basic necessities, particularly rice, the staple food. The principal objective of
this study is to assess the impacts of price increase of rice on household expenditures of middle-income
families in some selected areas of Dhaka City. The study used the linear regression where average
price of rice per KG has been considered to be an independent variable and the total monthly
consumption and expenditure on Rice, monthly expenditure on Vegetables, Meat, Pulse, Atta, Clothes,
Conveyance, House Rent and monthly Savings has been considered as dependent variables. The study
shows that, the impact of price increase of rice has substantially influenced the family expenditure on
the above mentioned food and non-food items. The variation of family expenditure due to price
increase ranges from 7% to 43% over the years. As the monthly family expenditure has shot up during
2006-2008, the households are facing significant strain on their family budget and their extent of
savings substantially diminished in the relevant period. In this perspective the study highlighted some
measures to overcome the present hardship of the households.
