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Effects of Inflaction on Agricultural Commodities

Author

Listed:
  • Nabiha Ahsan

    (Department of Space Science,University of the Punjab,Lahore)

  • Aamer Amin

    (Department of Space Science,University of the Punjab,Lahore)

  • Jamal Hassan

    (Government Associate College, Salar Wala, Faisalabad)

  • Tahir Mahmood

    (Department of Space Science,University of the Punjab,Lahore)

Abstract

This study examines both the natural world and the volatility of the pricing agents in Pakistan. This study investigates the causes of increased prices of agricultural commodities and food products in Pakistan. The IMF, World Bank, IFS (International Financial Statistics), and SBP (State Bank of Pakistan) provided sufficient data to conduct this research. We studied the dynamics of conditional volatility for agricultural commodities versus food product prices and explained the diffusion between these two. The study indicates that the selected commodities are affected by various factors including the volatility effect, the mean of interest rates, and the exchange rate. In addition, the volatility of wheat prices has a significant effect on the rice price series. In contrast, the cost of chicken has no impact on the average cost of beef or any other commodity. Most commodities, excluding oil and cotton, have been found to have a considerable impact on their present prices due to the influence of pricing. Farmers should be encouraged to utilize hedging mechanisms in the future to lessen price volatility.

Suggested Citation

  • Nabiha Ahsan & Aamer Amin & Jamal Hassan & Tahir Mahmood, 2020. "Effects of Inflaction on Agricultural Commodities," International Journal of Agriculture & Sustainable Development, 50sea, vol. 2(4), pages 105-111, November.
    • Handle: RePEc:abq:ijasd1:v:2:y:2020:i:4:p:105-111
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Price volatility; Farming goods; Fertilizers; Interest rate.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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