The cost of living in Dhaka has declined in mid-2025 compared to the same period last year, driven by reduced inflation and stable local production, according to new data from Serbia-based Numbeo, the world’s largest cost-of-living database.

Numbeo’s latest figures show Dhaka’s cost-of-living index stood at 23.5 in June 2025, down from 25.1 in June 2024. The index covers essential living expenses such as consumer goods, rent, and groceries.

A key component of this decline was a drop in the grocery index, which fell to 28.3 from 29.0 over the same period. Rental prices, however, remained steady, showing no significant change over the past year.

Bangladeshi economist Dr. Zahid Hussain attributed the lower index primarily to easing inflation during this period. He noted that many locally produced food items maintained relatively low prices at the farm level, although inefficiencies in Dhaka’s supply chains meant that urban consumer prices stayed elevated in some sectors.

Dr Hussain also cautioned that Numbeo’s data, largely based on user-submitted information, might not capture all variations across Dhaka, but still serves as a useful international benchmark.

Despite the decrease, Dhaka ranked 72nd out of 93 Asian cities surveyed in June 2025, with Singapore remaining Asia’s most expensive city. Within South Asia, Dhaka placed 6th among 27 cities, following Colombo as the region’s costliest urban centre.

Globally, Dhaka ranked 379th out of 404 cities, reflecting its position among the world’s more affordable cities. This year, Zurich replaced Geneva as the world’s most expensive city.

Established in 2009, Numbeo gathers crowdsourced data on living costs and quality-of-life indicators in urban centres worldwide.