Hard Times

January 9, 2008

Bangladesh has gotten more expensive since the last time I was here. The cost of everything (labor, food, lodging) has increased by more than 30%. I think the main cause for this increase is the cyclone that hit the country this November. My understanding is that the storm ruined a lot of current crops as well as crop land. So now there is a shortage of rice in the country. Everyone is telling me that rice used to cost ~15 taka/kg and now it cost ~35-50 taka/kg (the price fluctuates as the government tries to manage the food shortage). As you can imagine, this increase in the cost of the staple food is difficult on everyone living here. I am not an economist, but I think the increased cost of rice is driving up the prices of everything else.