Inflation is defined as a sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. Under conditions of inflation, the prices of things rise over time. Put differently, as inflation rises, every dollar you own buys a smaller percentage of a good or service. When prices rise, and alternatively when the value of money falls you have inflation inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time. The opposite of inflation is deflation

2. My Presentation topics:
Inflation
About My self
Name : Rizwan Mahbub Khan
Intake: 30
Section: 02
Id No: 12132101051

4. According to Pigou “ Inflation
arises when money income is
expanding more than
proportionate to income earning
activity”.

5. Types of inflation (On the Basis of Speed or Intensity)
,
Creeping inflation Walking inflation
Running inflation Government’s
Reaction to Inflation

6. Walking inflation:-
Creeping inflation:-
The inflation of a nation increases gradually, but continually,
over time.
When the price rise is moderate. It is a warning signal for the
government to control it before it turns into running inflation.

7. Government’s Reaction to Inflation:-
Running inflation:-
A rapid acceleration in the rate of rising prices more
than 10% per annum is referred as Running Inflation
Inflationary situation may be open or suppressed. Because of
anti-inflationary policies pursued by the government, inflation
may not be an embarrassing one.

8. 1) Demand pull inflation(ex: petrol)
2) Cost push inflation(ex: cement)
3) Over- Expansion of Money Supply
4) Increase in Population
5) Expansion of Bank Credit
6) Black Money
7) Poor Performance of Farm Sector

9. EFFECTS OF INFLATION
• DEBETORS
• ENTREPRENEURS
• FARMERS
• UPPER INCOME GROUPS
• CREDITORS
• FIXED INCOME GROUPS
• CONSUMERS
• MIDDLE AND LOWER
INCOME GROUPS
BENEFITS LOSES

10. Calculation of inflation:
New price – Old price
Old price
*
100=
For instance:-
Inflation for today’s petrol price.
Old price = 70
New price = 75
=
75-70
70
* 100 = 7.14%

11. Bangladesh Latest Reference Previous Range
GDP Growth
Rate
6.51 2015 6.12 4.08:6.63
Unemploym
ent Rate
4.3 2014 4.5 4.3:5.1
Inflation
Rate
5.4 Jul 2016 5.53 -0.03:16
Interest
Rate
6.75 26Jul,2016 7.25 4.5:8.75
Bangladesh - Economic Indicators :

12. Thanks to you MAdam for giving me the
opportunity to present something special