Compulsion of Food Price Inflation and its Consequence in Pakistan

Abstract

This study describes the impact on food price inflation in Pakistan using time series data period from 1975-2019. In this quantitative research analysis Augmented Dickey-Fuller (ADF) test used to check the stationarty and Autoregressive Distributed Lag Model (ARDL) to find the Long-run and short run relationship. The main variables which are used are food export, food import, GDP growth, food production index, food price inflation, and money supply. The result showed there is a significant & positive impact of food export, food import on Food price inflation.  Due to high rise in prices the poor become poorer & it dishearten them, their 60 % of the earning goes on food. In Pakistan there is limited marketing for the food that is unpreserved able & a lack of cold storage for food preservation. So prices rise when greater demand for products or less supply. The researcher suggested the govt. of Pakistan take crucial steps to increase the production of food items and there is a strong agriculture policy.