Dhaka, Feb. 8 -- Election-centric money flows from and into the banking system surge as Bangladesh goes to the polls soon, with a domino effect on the economy.

As the money market and public wallets fatten, a worrisome major macroeconomic parameter-inflation-takes in some new heat, analysts say.

Apart from the broad money supply, upswing in the volume of currency outside the banks is also observed after months of downswing as election campaigns gather pace.

Officials and money-market analysts have said money supply or broad money normally goes up largely before any general election, driven by intensified campaign spending, increased public demand for cash, and, in some cases, voter-inducement tactics.

According to data with Bangladesh...