Inflation, Subjective Well-being, and Aspirations: Evidence from Rural Households in Bangladesh

Inflation in Bangladesh has reached alarming levels, becoming a major topic of public discussion and economic concern. To evaluate the impact of high inflation on rural food consumption and the subjective well-being and aspirations of rural residents, we conduct a comprehensive household survey. From the survey, we find that despite being uncomfortable with the food price hike or recent inflation, households maintain an optimistic or positive view and aspirations towards their future life and status and have greater hopes for their future generation. Using an ordered logit regression, the analysis highlights the interconnectedness of financial perceptions, aspirations, and subjective satisfaction, aligning well with established economic theories on utility, expectations, and human behaviour.