Food inflatation

1. FOOD INFLATION
GROUP 7

2. Presented by : Hafsa Tahir
Presented to :Dr. Salma
Roll No : 19011521-024
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3. Outline
• INFLATION
• FOOD INFLATION
• CAUSES OF FOOD INFLATION
• EFFECTS OF FOOD INFLATION
• IMPACT OF COVID 19 ON FOOD INFLATION
• HOW TO PREVENT FOOD INFLATION ?
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4. INFLATION
• In Economics Inflation is the rate of
increase in prices over a given
period of time.
• Inflation is the decline of purchasing
power of a given currency over time.
• Inflation is caused by both demand
and supply side of market forces.
• According to Economic Survey of
Pakistan 2020 to 2021:
Inflation rate is 11.1%
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5. Reasons of Inflation
Two main reasons of inflation:
•Demand pull inflation.
•Cost push inflation.
Demand pull Inflation:
Economic boom.
A demand pull inflation is when
the inflation rises with the rise in
demand.
Cost push Inflation:
The second reason is the increase
in the prices of the raw materials
due to different reasons.
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6. Inflation rate (April 2020 to 2021)
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7. Food Inflation
Food Inflation is the rise in prices of food items.
Food is the basic need of all living creatures in
the contemporary world. The continuous rise
in the prices of food items is termed as food
inflation.
Calculated or measured by:
 It is calculated on the basis of WPI(Wholesale
price index).
 It is calculated on the basis of CPI(Consumer
price index).
Food Inflation rate in January 2020 is 23.6% and
17.8% in July 2020 and 15.9% in April 2021
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Consumer Price Index:
CPI is a price index which represents the average price of baskets of a
goods and services over time. It calculates the average price paid by the
consumer to the shopkeepers. It is also called Retail Price Index.

9. Wholesale Price Index:
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(WPI) is a price index which represents the wholesale prices of a basket of goods over time.
In simple words, WPI is an indicator of price changes in the wholesale market. WPI
measures the changes in the prices charged by manufacturers and wholesalers . WPI
measure the changes in commodity prices at a selected stages before goods reaches to the
retail level

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https://youtu.be/oImxcKc0qak
https://www.finance.gov.pk/survey_2021.html