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The Impact of Food Inflation on Poverty in Nepal

Author

Listed:
  • Min Bahadur Shrestha, Ph.D.

    (Nepal Rastra Bank)

  • 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.

Suggested Citation

  • Min Bahadur Shrestha, Ph.D. & Shashi Kant Chaudhary, 2012. "The Impact of Food Inflation on Poverty in Nepal," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 24(2), pages 1-14, October.
    • Handle: RePEc:nrb:journl:v:24:y:2012:i:2:p:1
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    References listed on IDEAS

    as
    1. 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.
    2. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    3. Wodon, Quentin & Zaman, Hassan, 2008. "Rising food prices in Sub-Saharan Africa : poverty impact and policy responses," Policy Research Working Paper Series 4738, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Agustin L. Arcenas, 2018. "Establishing the Link Between Poverty and Changes in Climatic Conditions in the Philippines," UP School of Economics Discussion Papers 201801, University of the Philippines School of Economics.
    2. Dipesh Karki & Hari Gopal Risal, 2019. "Asymmetric Impact of Oil Price on Inflation: Evidence from Nepal," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 31(1), pages 21-46, April.
    3. Mario Arturo Ruiz Estrada & Donghyun Park & Alam Khan & Muhammad Tahir, 2019. "Is terrorism, poverty, and refugees the dark side of globalization?," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 1823-1835, July.

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    More about this item

    Keywords

    Consumption; food prices; poverty;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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