In every developing country inflation of some kind occurs along
with economic development which is called natural inflation. The
rate of this natural inflation is more or less 5%. If the inflation
exceeds 5% the general demand for local products and the
consumers are affected. In Bangladesh the present rate of
inflation is relatively high even though the figure remains within
the single digit. We are afraid if we cannot resolve this problem of
inflation by contractionary economic policies this rate will rich the
double digit soon. It will result in terrible crisis in economic
activities of the country. Because of adverse effect of inflation the
economy and the nation are being affected in different ways.
Unexpectedly different groups of people are affected in different
fashion. The poor is becoming poorer. The rich is becoming
richer. Inflation is creating obstacle to the development of the
country. Buying capacity of the mass has drastically decreased.
Peace and happiness in public life is pitiably affected because
they cannot afford to buy goods and services they require as
before. The demand and supply of our own goods and services
have reduced. Goods and services in a country are provided by
the agriculture industries and business organization and

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