Food Inflation
Food Inflation It is a specific subset of overall inflation, which measures the general increase in prices across the economy. Food is a fundamental necessity for individuals and households, and when the prices of food items rise significantly, it can have a profound impact on people's daily lives and overall economic well-being. Several factors can contribute to food inflation, including: Supply and Demand Dynamics: When the demand for food exceeds its supply, prices tend to rise. Factors such as population growth, changing dietary preferences, and shifts in consumer behaviour can influence demand. On the supply side, factors like extreme weather events, pests, diseases affecting crops or livestock, and supply chain disruptions can reduce the availability of food, leading to price increases. Production Costs: The cost of producing and transporting food can impact prices. Increases in the cost of inputs like fertilizers, fuel, and labour can raise production cos