How does inflation affect the Bangladesh economy?
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Inflation in Bangladesh affects the cost of living, purchasing power, and business costs. Food inflation is particularly impactful since a large portion of household income goes to food. Bangladesh Bank targets inflation through monetary policy, adjusting policy rates and managing money supply. High inflation erodes savings and can lead to social unrest. The BBS publishes monthly inflation data. Supply chain disruptions, global commodity prices, and exchange rate depreciation are key inflation drivers.