Dhaka, April 14 -- Across Bangladesh and among Bengali communities worldwide, the advent of Pahela Baishakh is usually marked by colour, commerce and collective joy. This year around, however, the festival unfolds against a difficult economic backdrop, as soaring prices of essentials and an acute fuel crisis sap both spending power and public sentiment.

In the capital, Dhaka, and beyond, shops that would typically be teeming with last-minute shoppers now appear noticeably subdued. Traders say the usual pre-festival rush is largely absent this year.

"Our sales this year are nearly half of what we saw over the past five years," says a shop owner at Aziz Market, known for its Baishakh clothing collections. "We prepared for months expecting...