Food Price Inflation and Relative Price Variability in India: Evidence from Decomposition Analysis

Q3 Economics, Econometrics and Finance

Studies in Microeconomics Pub Date : 2022-03-24 DOI:10.1177/23210222221086404

Asharani Samal, Phanindra Goyari

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引用次数: 1

Abstract

The present study examines the decomposition of relative price variability into two components (i.e., inflationary and real factors) in India using monthly data on 105 commodities prices over the period January 2005 to March 2017. The analysis of the study revealed that under primary food articles, 53% of relative price variability is due to real factors, and the remaining 47% due to inflationary factors. Whereas for manufactured food products, 30% of relative price variability is due to real factors, and the rest of the 70% due to inflationary factors. Overall, the important conclusion that emerges from the analysis is that few commodity prices have a larger contribution to relative price variability in the food basket. The majority of commodity prices under primary food articles have a larger contribution to variability in relative price changes, whereas under manufactured food products have the least contribution. Moreover, this study also accounts for wholesale price index and consumer price index non-food commodities to identify to which extent relative price variability is determined by real and inflationary factors. JEL Codes: E30, E31, Q11, L66

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印度食品价格通胀与相对价格变异性:来自分解分析的证据

本研究使用2005年1月至2017年3月期间105种大宗商品价格的月度数据，将印度的相对价格波动分解为两个组成部分(即通胀因素和实际因素)。研究分析表明，在初级食品中，53%的相对价格波动是由实际因素造成的，其余47%是由通货膨胀因素造成的。而对于加工食品，30%的相对价格波动是由实际因素造成的，其余70%是由通货膨胀因素造成的。总的来说，从分析中得出的重要结论是，很少有商品价格对食品篮子的相对价格波动有更大的贡献。初级食品项下的大多数商品价格对相对价格变化的可变性贡献较大，而工业食品项下的贡献最小。此外，本研究还考虑了批发价格指数和非食品类商品的消费者价格指数，以确定相对价格波动在多大程度上是由实际因素和通货膨胀因素决定的。JEL代码:E30, E31, Q11, L66

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来源期刊

Studies in Microeconomics Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.40

自引率

0.00%

发文量

期刊介绍： Studies in Microeconomics seeks high quality theoretical as well as applied (or empirical) research in all areas of microeconomics (broadly defined to include other avenues of decision science such as psychology, political science and organizational behavior). In particular, we encourage submissions in new areas of Microeconomics such as in the fields of Experimental economics and Behavioral Economics. All manuscripts will be subjected to a peer-review process. The intended audience of the journal are professional economists and young researchers with an interest and expertise in microeconomics and above. In addition to full-length articles MIC is interested in publishing and promoting shorter refereed articles (letters and notes) that are pertinent to the specialist in the field of Microeconomics (broadly defined). MIC will periodically publish special issues with themes of particular interest, including articles solicited from leading scholars as well as authoritative survey articles and meta-analysis on the themed topic. We will also publish book reviews related to microeconomics, and MIC encourages publishing articles from policy practitioners dealing with microeconomic issues that have policy relevance under the section Policy Analysis and Debate.