DSE Inflation Impact Calculator

What is Inflation?

Inflation is the rate at which the general level of prices for goods and services is rising. In Bangladesh, we experience this through the rising cost of rice, fuel, and house rent. As inflation rises, every Taka you own buys a smaller percentage of a good or service.

Why is it critical for Bangladesh Investors?

The Bangladesh economy has seen high inflation rates (often between 8% to 10% recently). This means if you keep your money in a cash account or a low-interest savings account, you are effectively losing wealth every year.

Example of Inflation Impact:

If you have Tk 1,000,000 (10 Lakh) today and inflation stays at 9% for 10 years:

• The nominal value remains 10 Lakh.
• The real value (purchasing power) drops to approximately Tk 420,000.
• You would need Tk 2,360,000 in 10 years to buy what 10 Lakh buys today.

DSE Stocks as an Inflation Hedge

Equities (Shares) are one of the best long-term hedges against inflation. When prices rise, profitable companies (like those in the Consumer Goods, Pharma, or Cement sectors) can often pass these costs to consumers, maintaining their profit margins.

As their earnings grow with inflation, their share prices and dividends typically rise as well, protecting the Real Value of your investment.

How to protect your wealth?

1. Avoid excessive cash: Only keep what you need for emergencies in bank accounts.
2. Invest in Productive Assets: Blue-chip companies on the DSE with strong pricing power (e.g., Square Pharma, BATBC, Marico).
3. Diversify into Real Estate: Land in Bangladesh has historically been a strong inflation hedge, though it lacks the liquidity of stocks.