Inflation trend of food and non-food items in Chhattisgarh

Abstract

This study aims to examines the impact of inflation on rural households in the Chhattisgarh plains, with a focus on income dynamics, consumption patterns, and coping strategies. A total of 228 rural households were surveyed across nine districts. Among the respondents, 89.47% were male and 10.53% female. Most belonged to the 40-59 age group (43.86%), followed by those aged 60 and above (22.81%), 30-39 (20.18%), and up to 29 years (13%). The majority lived in nuclear families (61%) and owned their homes (98%). Housing types included single-storied (43%), multi-storied (15.79%), and thatched structures (13%). Education levels were predominantly primary (32.89%) and higher secondary (32.02%), while only 11% had college degrees. To analyze the data, a combination of descriptive statistics, trend analysis, Consumer Price Index (CPI) calculations, year-on-year inflation rate estimation, and paired t-tests were employed. while CPI-weighted indices were constructed for both food and non-food categories. These tools helped in identifying the magnitude and variation of inflationary pressures across different commodities and demographic groups. The findings show a consistent rise in both food and non-food prices. Food prices increased by over 50%, particularly during the COVID-19 period in 2020, while non-food categories such as education, transportation, clothing, fuel, and healthcare also experienced significant price hikes. A short dip in food prices during 2017-18 was followed by a persistent upward trend. In 2023, rural inflation stood at 8.07%, while inflation for non-food items reached 14.79%. Agriculture was the primary income source for 85% of households, though non-farm incomes (from wages, businesses, and pensions) showed steady growth. Despite some upward mobility, many families remained in lower-income brackets, while higher-income families were better positioned to diversify into non-agriculture sectors.