MD Shariful

Islam

Somrat Babu

Monjurul Islam

Mhamudul Hasan

Monayem Hossain

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.

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.

Inflation Method of calculation: Inflation is usually

estimated by calculating the inflation rate of a price index.

Formula: inflation rate= If is the current average price level and is

the price level a year ago.

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 controlOpen inflation Suppressed inflation

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

Inflation rate 2015

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.

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.

Controlling InflationFixed 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).

Controlling InflationWage & 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.

Controlling InflationAdditional 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.

Thank You Everyone