Inflation and banana prices : a vector autoregression model

Abstract

This study uses a thorough time series analysis to investigate the dynamic interaction between inflation and banana prices. Policymakers and stakeholders in the agriculture sector must comprehend the intricate relationship between these factors in a global setting where inflationary pressures and variations in agricultural commodity prices are major economic issues. The current research investigation employs complex time series methods such as vector autoregressive (VAR) models, Granger causality tests, and the Johansen Co-integration test, to examine the causative relationships and enduring patterns between inflation and banana prices. By applying thorough data examination and statistical procedures, we reveal the intricate patterns and interdependencies present in this association. The results provide insight into how much inflation affects banana pricing and how much the opposite is true, with possible ramifications for consumer behavior, market dynamics, and policymaking. The study also emphasizes how crucial it is to consider the dynamics of the agriculture market in addition to macroeconomic considerations when analyzing how price fluctuations and inflationary pressures are shaped. The knowledge gained from this study adds to our comprehension of the complex relationship between inflation and agricultural commodity prices, with important ramifications for economists, politicians, and market players.