South Asia is the region most vulnerable to increasing food inflation given that a large part of its population lives below or near the poverty line. An empirical analysis of the factors that could explain the increase in food inflation is presented in this paper, while the effect of food price inflation on poverty and macroeconomic stability in south Asia is considered. Along with proposing some practical policies to address the situation, regional cooperation is identified as a factor that has the potential to provide an effective solution.

This paper deals with the problems related to food price inflation in South Asia in a comprehensive manner.Includes an empirical analysis of the possible factors that could explain the increase in food inflation and also covers the impact of food price inflation on poverty and macroeconomic stability in South Asia .

This paper focuses on the economic impact of the global crisis on South Asia and the policy measures pursued.It analyzes the effectiveness of these policies and raises the critical longerterm issues, which to date have largely been ignored.