RBI paper: Rural wages main driver of Indian food inflation
Economists analyse the different drivers of food inflation in India
Real rural wages have the "largest impact" on Indian food inflation, according to a working paper published by the Reserve Bank of India, making it necessary to raise agricultural productivity to shackle rising prices.
Food prices contributed almost 60% of the 7.8% inflation recorded in August. In Analytics of food inflation in India, Thangzason Sonna, Himanshu Joshi, Alice Sebastian and Upasana Sharma consider what is driving them.
"Increasing real rural wages have played the most dominant role
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