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The Impact of Food Inflation on Poverty in Nepal

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  • Min Bahadur Shrestha Ph.D.

    ()

  • Shashi Kant Chaudhary

    ()
    (Nepal Rastra Bank)

Abstract

This paper examines the impact of food price hike on poverty in Nepal employing cross-sectional sample household consumption data of Nepal Living Standard Survey III. The findings of the study suggest that a 10 percent rise in food prices is likely to increase overall poverty in Nepal by 4 percentage points. It implies that one percent rise in food inflation will push 100 thousand additional people into overall poverty and 180 thousand additional people into food poverty. The paper also analyses the impact at the regional level and suggests some policy options to contain the food inflation and to mitigate the impact of food price hike on the poor section of the population.

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File URL: http://www.nrb.org.np/ecorev/pdffiles/vol24-2_art1.pdf
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Bibliographic Info

Article provided by Nepal Rastra Bank, Research Department in its journal NRB Economic Review.

Volume (Year): 24 (2012)
Issue (Month): 2 (October)
Pages: 1-14

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Handle: RePEc:nrb:journl:v:24:y:2012:i:2:p:1-14

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Web page: http://www.nrb.org.np/ecorev/
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Keywords: Consumption; food prices; poverty;

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  1. Alberto Zezza & Benjamin Davis & Carlo Azzarri & Katia Covarrubias & Luca Tasciotti & Gustavo Anriquez, 2008. "The Impact of Rising Food Prices on the Poor," Working Papers 08-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  2. Isabel Ortiz & Jingqing Chai & Matthew Cummins, 2011. "Escalating Food Prices: The threat to poor households and policies to safeguard a Recovery for All," Working papers 1101, UNICEF,Division of Policy and Strategy.
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