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Characterizing food prices in India

Author

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  • Andaleeb Rahman

    (Indira Gandhi Institute of Development Research
    Institute of Economic Growth)

Abstract

This paper seeks to improve our understanding of the behaviour of wholesale price index (WPI) of 24 selected food products in India over a long period of time. The hypothesis of declining trend in prices is not found for all commodities although we do find that price of food grains exhibit a negative trend as a result of positive productivity shock. Two main finding of this paper in the context of cyclical behaviour of prices are: asymmetry in the duration spent in boom and slump and the fact that the price cycle does not have a consistent shape. This has implications for formulating counter cyclical policies.

Suggested Citation

  • Andaleeb Rahman, 2012. "Characterizing food prices in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-022, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2012-022
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2012-022.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Price level; Cycles;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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