Impact of Consumer Price Index (CPI) and Inflation on GDP: Evidence from Bangladesh
Abstract
The study examines the impact of the Consumer Price Index (CPI) and Inflation on the Gross Domestic Product (GDP) of Bangladesh during 2006-2007 to 2021-2022. The research investigates the connection between GDP and these economic indicators using multiple linear regression analysis. The results reveals that the CPI significantly boosts GDP, suggesting that shifts in consumer prices over time have a big impact on the nation's overall economic development. In contrast, there appears to be a modest negative correlation between the GDP and the inflation rate. The study emphasizes the CPI's crucial influence on Bangladesh's GDP and highlights its significance as a major factor influencing the country's economic growth. These findings have important ramifications for stakeholders and policymakers, emphasizing the necessity of taking calculated risks to control inflation and the CPI in order to promote Bangladesh's sustainable economic progress and enhance excellence of life for its populace.
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