In the recent years, food price inflation has risen very sharply at
global level. It is also one of the thorniest issues in the
economies of developing South Asian countries like Pakistan. To
determine the factors behind this persistent food price inflation
is a matter of great interest and concern for the academics and
policy makers. This study focuses on the identification of main
determinants of food price inflation in Pakistan. Empirical
findings prove that both demand and supply side factors like
inflation expectations, money supply, per capita GDP, support
prices, food imports and food exports are the main determinants of
food price inflation in Pakistan. Its findings may provide some
important guide lines for policy makers to control the recent
inflationary trends of food prices in the country.
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