Strong fiscal policy is the key to taming inflation in Bangladesh

Business Desk :
The impact of inflation is different from one person to another depending on their income level, stability of employment, family size etc.
The impact is most severe on the lower income groups; it is usually more severe in urban than in rural areas as farmers cultivate some of their own food and usually own or have some rights to the land on which they live.
Market prices for food will not always reflect the effective price that a farmer feels when he is producing some food items.
In Bangladesh inflation had been, over the past decade, about 6% per annum.
That is, the average or median family found that the cost of buying the things that they needed had increased 5-6% per year.
It has risen to 9% in the past two months according to the official rates.
The bundle of goods which are included cover expenditures of households in 2005-06; the actual bundle of goods now consumed is most likely to be more expensive than the 2005-06 lot.
One hopes the government will allow the Bangladesh Bureau of Statistics (BBS) to report the actual price level.
There is already great skepticism about the inflation rate.
In almost all countries high inflation rates result in falling standards of living for most persons, leading people to be discontent and anxious.
In modern economies containing inflation is the responsibility of the central bank.