Please enter verification code
Confirm
Inflation Impact on the Primary Food Products - Emerging Trends and Determinants
International Journal of Economics, Finance and Management Sciences
Volume 5, Issue 1, February 2017, Pages: 1-14
Received: Oct. 25, 2016; Accepted: Nov. 11, 2016; Published: Dec. 12, 2016
Views 4224      Downloads 143
Author
S. S. Jeyaraj, Sino-British College, GXUN Business School, Guangxi University for Nationalities, Nanning, China
Article Tools
Follow on us
Abstract
India and its average food inflation during the period 2006-2013 was one of the highest among emerging market economies, and nearly double the inflation witnessed in during the previous decade. Present paper, I analysed the trend and major drivers of inflation factors for the food inflation. Study is both descriptive and analytical and entirely based on secondary data obtained from different published sources, authenticated source have been chosen without any personal bias. Analyze the data, percentages, growth rate and compounded annual growth rate were used to examine the major drivers of inflation and Ordinary Least Square Method and Trend analysis was used to calculate year over year growth rate. I observed from the analysis of WPI of all commodities was highly variable during the study period due to decadal growth rate showed decreasing trend, population continued to increase and growth of per-capita income has also increased. Despite declines in monthly Per Capita Consumer Expenditure, expenditures on food had increased which indicates a higher demand food in both urban and rural areas. Finally, results suggest that government should take effective measures to reduce the population, new economic policy which increased the demand for variety of food products and increase the agriculture productivity with low cost inputs.
Keywords
Monetary Policy Rules, Price Stability, Consumer Price Index, Central Bank, Inflation, Wholesale Price Index
To cite this article
S. S. Jeyaraj, Inflation Impact on the Primary Food Products - Emerging Trends and Determinants, International Journal of Economics, Finance and Management Sciences. Vol. 5, No. 1, 2017, pp. 1-14. doi: 10.11648/j.ijefm.20170501.11
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Anand, Rahul, Ding Ding, and Volodymyr Tulin, 2014, “Food Inflation in India: The Role for Monetary Policy,” IMF Working Paper 14/178 (Washington: International Monetary Fund).
[2]
Walsh, James, 2011, “Reconsidering the Role of Food Prices in Inflation,” IMF Working Paper 11/71 (Washington: International Monetary Fund).
[3]
Reserve Bank of India, 2014b, “Reserve Bank of India Annual Report 2013-14,” August 2014.
[4]
GokarnSubir, 2011, “Food Inflation – This Time it’s Different”, Kale Memorial Lecture at the Gokhale Institute of Politics and Economics, Pune, 9 December 2011.
[5]
Sonna, Thangzason, Himanshu Joshi, Alice Sebastian, and Upasana Sharma, 2014, “Analytics of Food Inflation in India”, RBI Working Paper, October 2014, Reserve Bank of India.
[6]
Edward Shapiro, Macroeconomics analysis, 3rd Edition, Harcourt Brace Jovanovich, inc. 1974, P.409.
[7]
Brain Snowdon and Howard R Vane, An Encyclopedia of Macroeconomics, Edward Elgar Publishing, 2002.
[8]
D. N Dwivedi, Macroeconomics Theory and Policy, Tata McGraw-hill Publishing Company Limited, New Delhi, 2004, P. 369.
[9]
K. C Rana and K. N Verma, Macroeconomics analysis, Vishal Publishing Co, Jalandhar, 2002, P. 584.
[10]
M. L Jhinjan, Macroeconomics Theory, 11th Revised Edition, Vrinda Publications (P) LTD, 2003, P. 448.
[11]
Mrityunjoy Banerjee, Inflation: Causes and Cures, The World Press Private Limited, Calcutta, 1975, P. 42.
[12]
BinduHima. D, “Inflation and Unemployment in India During 1970-1984: The Relevance of Philips curve”, Department of Economics, Stella Maris College, Madras, December 1990, PP. 115-116.
[13]
Barman R. B, Madhusoodanan T. P and Samanta G. P, “Dynamics of Inflation in India and their Modeling by Time Series Analysis”, Reserve Bank of India occasional papers, Vol-15, No-2, June 1994, PP. 103-123.
[14]
Gaur G. L, “Is Pay Rise Leading to Price Rise”, Economic Affairs, Vol-41, Qr.2, June 1996, PP. 199-122.
[15]
Samanta G. P and MitraSharmishtha, “Recent Divergence Between Wholesale and Consumer Prices in India – A Statistical Exploration”, Reserve bank of India occasional papers, Vol-19, No-4, December 1998, PP. 329-343.
[16]
KhundrappamJeevan Kumar, “Why should Government be Indifferent to Inflation “, Reserve Bank of India occasional to Paper, Vol-20, No-3, winter 1999, PP. 415-427.
[17]
Malik Girijasankar and ChowdhuryAnis, “Inflation and Economic Growth:Evidence from Four South Asian Countries”, Asia-Pacific Development Journal, Vol-8, No-1, 2001, PP. 123-135.
[18]
J. F. Kirsten, N. Vink, D. Scheepers, F. Meyer, M. Calcaterra and L. Jenkins, “The political economy of food price inflation in South Africa “, Working Paper 2002-02, Department of Agricultural Economics, University of Pretoria, South Africa, 2002, PP. 3-11.
[19]
Otero Jesus and Manual Remirez “Inflation before and after Central Bank Independence: The case of Colombia”, Journal of development economics, Vol-79, No-1, Feb-2006, PP. 168-180.
[20]
Ogbokor A Cyril, “Impacts of Inflation on Namibian Growth: An empirical study” Journal of Applied sciences, 4(4), 2004, PP. 644-648.
[21]
Ahmed Shamin and Mortaza Md. Golam, “Inflation and Economic Growth in Bangladesh: 1981-2005”, Working paper No 0604, Bangladesh Bank, December 2005, PP. 1-16.
[22]
Chen Shyh-Wei, Shen Chung-Hua and XieZixiong, “Evidence of a Nonlinear Relationship between Inflation and Inflation Uncertainly: The Case of the Four Little Dragons”, Journal of Policy Modeling, Vol-30, Issue-2, March/April- 2008, PP. 363-376.
[23]
Calvo Guillermo, CelasumOya and Kumhof Michael, “Inflation Inertia and Credible Disinflation”, Journal of International Economics, Vol-73, Issue-1, September-2007, PP. 48-66.
[24]
RudraniBhattachary, IlaPatnaik and Ajay Shah, “Early Warnings of Inflation in India”, Working Paper No-2008-54, National Institute of public Finance and Policy, New Delhi, August 2008, PP. 1-19.
[25]
Beak Jungho and Koo W. Won, “Analyzing Factors Affecting U. S Food Price Inflation”, Centre for agriculture policy and trade studies, North Dakota state university, September 2009, P. 14.
[26]
Porter Nathan, “Price Dynamics in China”, IMF Working Paper /10/221, Asia and Pacific Department, September 2010, PP. 3-22.
[27]
AtulGuha, Ashutosh Kr Tripathi, (2014). “Link between Food Price Inflation and Rural Wage Dynamics” Economic and Political Weekly, June 28, 2014 (Vol. XLIX Nos. 26 & 27).
[28]
Gulati and Saini (2013), ‘Taming Food Inflation in India’, Discussion Paper No. 4, Commission for Agricultural Costs and Prices, Ministry of Agriculture, Government of India.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186