Dhaka, Nov. 16 -- At a salon in Dhaka's Shewrapara, Govinda Shil can no longer make ends meet. For six years, he earned about Tk 25,000 a month from daily wages and tips, enough to support his wife and two children and put away a little. Now fewer customers come through the door. His income has fallen as the prices of rice, lentils, oil and other essentials have climbed. Each month, he borrows to keep the household going.

"Things are very difficult now, sir. I can't carry on like this. I can't make the sums add up. A kilogram of rice alone costs Tk 70. Everything in the market is so expensive," the 35-year-old said at his salon on Friday.

Mahibul, a 25-year-old from Gaibandha who moved to Dhaka two years ago, is struggling too. He drive...