Bangladesh like many other underdeveloped countries is in the grip of an economic crisis. Here, prices of essential commodities are increasing day by day. As a result, consumers are being very badly affected. The poor are the most sufferers. Price-hike has become a national problem in our country. The main items whose prices have recorded an abnormal rise are food, clothes, fuel, oil and many other essential things. The price-hike should not be regarded as an isolated phenomenon in our economy. Instead the causes of price-hike should be attributed to several factors. Hoarding, smuggling, black-marketing, faulty system of permit, flood, drought and population problem are the main reasons behind price-hike. Hoarding has become an important reason for rising price level. Hording should be stopped not only at the growers’ and distributors’ level but also at the consumers’ level. If both producers and consumers hoard essential commodities, normal supply of them is bound to breakdown. Consumers and producers in our country are not in direct contact. They are brought together by a chain of middlemen. These middle man take every advantage to manipulate the flow of commodities and hoard with profiteering motive and thus aggravate the situation. Food and other essential commodities are being constantly smuggled across the border. Smuggling has undoubtedly stirred the price balance in Bangladesh. A section of people have adopted black-marketing as a profitable mood of business. They have earned huge money by creating a great problem in the society. The faulty system of permit distribution has accelerated the price-hike of essential commodities. Many of the permit holders have earned their permits through illegal means. These dishonest permit holders sell their imported items at a price which is much higher than the original price. Flood and drought always bring havoc to our economy. The population problem which has been prevailing in BD since its birth has much to cause the instability of prices here. Government has set up fair price shops. But mere establishment of fair price shop will not solve the problem unless the problem is tackled in a comprehensive way. It is imperative that the Government should engage its machinery to enforce proper and effective measures ruthlessly so as to eradicate the causes of price-hike.