This document discusses inflation in Bangladesh. It defines inflation as a rise in the general price level of goods and services over time. The inflation rate is calculated by comparing the current average price level to the level from one year ago. Types of inflation include sectoral, comprehensive, wartime, and peacetime inflation. Effects of inflation include impacts on investment, exchange rates, interest rates, unemployment, and stock prices. Reasons for inflation in Bangladesh include excess money borrowing, food prices, exchange rate fluctuations, and money supply growth. Methods to control inflation include monetary policy, fixed exchange rates, wage and price controls, and ensuring export growth, remittances, infrastructure development, and adequate utilities.

3. MD Shariful
Islam
Somrat
Babu
Monjurul
Islam
Mhamudul
Hasan
Monayem
Hossain

4. Inflation……
 A term used in Economic.
 When a rise in the general level of
prices of goods and services in an
economy over a period of time is know
as inflation.
 If general price level rises each unit of
currency buys fewer goods and
services.

5. What is inflation
 The rate at which the general level of
prices for goods and services is rising
called Inflation.
 A price level is a hypothetical measure
of overall prices for some set of goods
and services. Typically, a price level is
approximated with a price index.

6. Inflation
 Method of calculation: Inflation is usually
estimated by calculating the inflation rate of
a price index.
 Formula: inflation rate=
𝑝0− 𝑝−1
𝑝−1
×100%
 If 𝑝0 is the current average price level and
𝑝−1 is the price level a year ago.

7. Types Of Inflation
On the basis of scope
Sectoral inflation Comprehensive inflation
On the basis of political conditions
War time inflation Peace time inflation
On the basis of the degree of the govt control
Open inflation Suppressed inflation

8. Effects of Inflation
 Investment
 Exchange rates
 Interest rates
 Unemployment
 Stock
 Decrease in the purchasing power
 Change the allocation of income

10. Inflation rate 2015

12. Reasons Behind Inflation in
Bangladesh
 Excess money borrows by
Government from Central bank.
 The overall food price.
 Exchange fate fluctuation.
 Growth of money supply.
 Increased inflow of workers
remittances.

13. Controlling Inflation
 Monetary Policy
 High interest rates and slow growth of
the money Supply are the traditional
ways through which central banks flight
or prevent inflation.
 Keynesians emphasize reducing
aggregate demand during economy
expansions and increasing demand
during recessions to keep inflation
stable.

14. Controlling Inflation
Fixed exchange rate
 Under a fixed exchange rate currency
regime, a country’s currency is tied in
value to another single currency or to a
basket of othar currencies (or
sometimes to another measure of value,
such as gold).

15. Controlling Inflation
Wage & price control
 Wage and price controls are regarded
as a temporary and exceptional
measure, only effective when coupled
with policies designed to reduce the
underlying causes of inflation during the
wage and price control regime.

16. Controlling Inflation
Additional Polices
 If Bangladesh could indeed bring about
positive fruits from its export of garments to
India
 If the foreign remittance flow pour in
regularly and satisfactorily
 If infrastructural development is done as
per plan
 If utilityservices, like power, gas and energy
could be ensured adequately.

18. Thank You
Everyone