Understanding India's Food Inflation : The Role of Demand and Supply Factors /

Over the past decade, India has seen a prolonged period of high inflation, to a large extent driven by persistently-high food inflation. This paper investigates the demand and supply factors behind the contribution of relative food inflation to headline CPI inflation. It concludes that in the absenc...

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Hlavní autor: Anand, Rahul
Další autoři: Kumar, Naresh, Tulin, Volodymyr
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2016.
Edice:IMF Working Papers; Working Paper ; No. 2016/002
On-line přístup:Full text available on IMF
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Shrnutí:Over the past decade, India has seen a prolonged period of high inflation, to a large extent driven by persistently-high food inflation. This paper investigates the demand and supply factors behind the contribution of relative food inflation to headline CPI inflation. It concludes that in the absence of a stronger food supply growth response, food inflation may exceed non-food inflation by 2 1\2 -3 percentage points per year. The sustainability of a long-term inflation target of 4 percent under India's recently-adopted flexible inflation targeting framework will depend on enhancing food supply, agricultural market-based pricing, and reducing price distortions. A well-designed cereal buffer stock liquidation policy could also help mitigate food inflation volatility.
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Fyzický popis:1 online resource (42 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
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