Food inflation, agri-food trade, and COVID-19: Evidence from South Asia

Abstract

The COVID-19 pandemic profoundly affected food security by disrupting supply chains through border closures Our study concentrates on South Asia and examines the interplay between COVID-19, agri-food trade, and inflation using monthly panel data spanning 2018–2021. Our findings demonstrate that the pandemic notably escalated food inflation in the region. Nevertheless, the robust interaction of agri-food trade with COVID-19 helped alleviate this effect. This underscores the significance of trade policies in controlling food inflation during the pandemic in South Asia.