Publication: Inflation in Bangladesh : Trends, Sources and Policy Options
Date
2006-02
ISSN
Published
2006-02
Author(s)
World Bank
Abstract
Inflation in Bangladesh has increased
from 1.9 percent in FY01 to 7.2 percent in FY06. The biggest
increase was in food prices. Food price inflation increased
from 1.4 percent in FY01 to 7.8 percent in FY06. By
contrast, non-food price inflation only doubled during the
same period. Food price inflation has been well above
non-food inflation since FY04. The rise in food inflation
could have resulted from developments in global commodity
markets, particularly since FY05, increases in domestic
production costs, and domestic demand. Inflation increased
in most major world economies during FY06 following a surge
in international commodity, energy and related fuel prices.
The relationship between inflation and growth remains
controversial both in theory and in empirics. The
inflation-growth relationship for Bangladesh, India,
Pakistan and Sri Lanka none of these countries have had high
inflation episodes in recent decades. Their analysis shows
that growth rates and inflation rates for all four countries
are co integrated, implying that there is a long run
relationship between inflation and growth in all four countries.
Citation
“World Bank. 2006. Inflation in Bangladesh : Trends, Sources and Policy Options. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/7af331a6-64e0-5f64-841d-27059f413856 License: CC BY 3.0 IGO.”