April 25, October 13, With the annual Spring Meetings of the World Bank and the International Monetary Fund IMF happening earlier this month, both institutions sought to focus the world's attention on multiple crises affecting developed and developing nations including food price inflation, natural disasters and their links to climate and the risk of ever more people descending into poverty following the worst economic downturn in 80 years. Even as nations continue to reel under the impact of these crises Vinod Thomas, Director-General at the World Bank, talked to Narayan Lakshman about their interconnected nature and indicated what focus future policies and reforms should have if they are to steer through the volatility.
Food inflation and food price volatility in India: Annual trends show that different commodities have contributed to food inflation in different years and that no single commodity shows uniformly high inflation.
A decomposition exercise shows that eggs, meat, fish, milk, cereals, and vegetables were generally the main contributors to recent food inflation. The contribution of pulses, except pigeon peas arharand of edible oils remained low. Fruits and vegetables displayed a much higher degree of intrayear volatility, and high-weight commodities in the national consumption basket also showed very high inflation rates, which is a cause for concern.
Results of the econometric analysis show that both supply and demand factors are important. Cereal and edible oil prices appear to be mainly driven by supply-side factors such as production, wage rates, and minimum support prices.
For pulses, the effects of supply- and demand-side factors appear almost equal. The prices of eggs, meat, fish, milk, and fruits and vegetables appear to be driven mainly by demand-side factors.
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This paper, based on a review of ex… Read More titled Gender justice and food security in India: Making pulses affordable again: Policy options from the farm to retail in India Rising prices and declining consumption of pulses cause concern in terms of both nutrition and food inflation in India.
This paper outlines policy strategies to increase the availability of pulses at affordable prices in India and also points out limit….24 rows · In the long-term, the India Food Inflation is projected to trend around percent in , according to our econometric models.
The Consumer Food Price Index accounts for percent of the total consumer price index. Inflation in general and food price inflation in particular has been a persistent problem in India over the past few years.
Price stability is crucial for sustainable growth as persistent inflation implies higher demand relative to supply. Therefore, we analyse here demand and supply of food in. The food inflation as measured by consumer food price index (CFPI) contracted to a negative % YoY, lowest since June last year.
Prices of pulses, sugar and vegetables were lower than last year prices, keeping retail inflation below the Central bank's target. India is experiencing high rate of economic growth in the last two decades but the growth has been coupled with high rate of food price inflation.
India uses the Wholesale Price Index (WPI) to calculate and then decide the inflation rate in the economy. Most developed countries use the Consumer Price Index (CPI) to calculate inflation.
Consumer price changes in India can be very volatile due to dependence on energy imports, the uncertain impact of monsoon rains on its large farm sector, difficulties transporting food items to market because of its poor .