The Relationship between Exports of Food Items and Inflation (CPI): Case Study of Pakistan

摘要

This study was carried out to analyze the relationship between the inflation and exports of the food items. The measure here used to assess the inflation was the Consumer Price Index (CPI) and the exports of the food item. The sample of 35 years inflation and exports of food items starting from 1976 to 2010 was collected from the State Bank of Pakistan data management centre. To analyze this association between these two variables the Pearson correlation test was applied. The result showed that correlation of 93% along with sig-value of 0.000 that meant both the variables of inflation and exports of food items had significant positive relationship with each other. When exports of food items were increasing, the supply of them within country was decreasing and it was increase in the demand of food items within a country, after that it could increase the prices of food items and finally inflation raised.