The paper analyzes the effects of changes in consumption factor on the calculation of inflation calculation in Bangladesh. This is important as there might exist some volatile and non-trend components within CPI as it is measursed in Bangladesh

The study uses co-integration and vector auto-regression (VAR) techniques to identify the determinants of income velocity of money (VM) in Bangladesh, covering both narrow and broad money. The study observes that financial development affects VM negatively. The VAR estimates show that two...