"Rate of increase in prices of commodities in a given period of time can be understood as inflation. That is value of goods and services increase declining the value of money. Classified as demand-pull inflation, cost-push inflation and built-in inflation. With relation to selected goods and services used, various price indices are used like Consumer Price Index (CPI) and Wholesale Price Index ( WPI). CPI measures the weighted average of primary consumer goods which consists of transportation, medicine and food. Changes in CPI helps in assessing the cost of living and also identifying periods of inflation or deflation. People look into inflation as good or bad depending on the which side it takes, for example tangible assets like property have inflation to be raising the price of their assets. Optimum level is always encourage spending than saving. Mainly, business, workers and consumers are accounted for effects of rising prices. The country's financial regulator checks with keeping track on inflation. More information about the topic can be understood from the presentation."

Nazrin Farzana

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