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Factors Affecting Consumer Food Price in India: An Econometric Analysis

Author

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  • Shambhavi Mittal

Abstract

This study examines the determinants of food price movements in India with the aim of assessing the influence of exchange rates, crude oil prices, monetary policy, and fertilizer prices on the Consumer Food Price Index (CFPI). The study adopts a quantitative secondary-data time-series econometric design using annual data for the period 2000-2025. The data was analyzed using descriptive statistics, Pearson pairwise correlation, multiple linear regression and multicollinearity diagnostics in STATA. The final regression results indicate that fertilizer WPI has a coefficient of 1.650269 and a P-value of 0.000 and EUR/INR exchange rate has a coefficient of 1.239716 with a P-value of 0.000 are statistically significant at 5%. The final model reports an R-squared of 0.9847.

Suggested Citation

Handle: RePEc:gcr:econbr:v:1:y:2026:i:2:a:smittal
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File URL: https://www.globalconfluencereview.in/Issue2-Vol1%5BJuly-Sep2026%5D/Shambhavi_Mittal.pdf
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JEL classification:

  • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
  • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
  • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
  • F31 - International Economics - - International Finance - - - Foreign Exchange

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