Analytics of Food Inflation in India
Published By: RBI on eSS | Published Date: October, 01 , 2014Food 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.
Author(s): Thangzason Sonna, Himanshu Joshi, Alice Sebastin, Upasana Sharma | Posted on: Oct 14, 2014 | Views(1096) | Download (2175)