Inflation Dynamics of Bangladesh: An Empirical Analysis

This study investigated the factors which contributed to inflation in Bangladesh from 1986 2021. The also explored presence of a long-run relationship among (denoted by Consumer Price Index), GDP, broad money supply, and exchange rate. Johansen cointegration test confirmed no those selected variables Bangladesh. I employed Vector Auto Regression (VAR) method reveal causal them. estimated result confirms that one period lagged supply positively affect inflation, is significant. While current period’s negatively affected last GDP rate, these effects are not statistically Additionally, year’s have positive effect on GDP.