Compressing data in line using weighted compression budgets

A technique for performing in-line compression includes receiving data into a data log that temporarily holds the data and aggregating the data into batches, where each batch includes multiple blocks of received data. For each batch of data, a storage system performs a compression operation, which proceeds block-by-block, compressing each block and comparing a total compressed size of all blocks compressed so far against a budget. The storage system increments the budget for successive blocks, such that a per-block budget is greater for a first block in the batch than it is for a last block in the batch, thus allowing earlier blocks to meet budget even if they are relatively incompressible.