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Food Price Escalation in South Asia
South Asia is the region most vulnerable to increasing food inflation given that a large part of its population lives below or near the poverty line. An empirical analysis of the factors that could explain the increase in food inflation is presented in this paper, while the effect of food price inflation on poverty and macroeconomic stability in south Asia is considered. Along with proposing some practical policies to address the situation, regional cooperation is identified as a factor that has the potential to provide an effective solution.
The authors wish to thank Sultan Hafeez Rahman, S Jha, M Zahid Hussain and an anonymous referee for their suggestions. They also wish to thank Rosa Mia Arao and Natalie Bertsch for their research support. The usual disclaimer applies. The views expressed are those of the authors and do not necessarily refl ect the views and policies of the Asian Development Bank or its board of governors or the governments they represent.
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