Analytics of Food Inflation in India

Thangzason Sonna, Himanshu Joshi, Alice Sebastin and Upasana Sharma

Working Papers from eSocialSciences

Abstract: Food inflation in India has remained stubborn in recent years. A number of proximate factors such as increasing demand particularly arising from higher rural wages, rising agricultural cost of production, changing consumption pattern favoring protein items, increases in minimum support prices (MSPs) and droughts in certain years are believed to have led to higher food inflation. This paper examines the relevance of these factors and finds that increasing real rural wages have played the most dominant role in the determination of overall food inflation in India in the long-run.

Keywords: food inflation; India; rural wages; protein; agricultural cost; production; consumption; prices; MSPs (search for similar items in EconPapers)
Date: 2014-10
Note: Institutional Papers
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Citations: View citations in EconPapers (8)

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