The Effect of Rising Food Prices and Policy on Children and Households Nutritional Outcomes in Ethiopia

This study examined the effect of rising food prices and policy on children and households’ nutritional outcomes. Cross and own price elasticities are calculated for the nine food groups. The result suggests that own price increase leads to a decrease in households budget share for the food groups examined. Households were able to substitute from expensive to relatively cheaper food group. A fixed effect model is estimated for the whole sample and for the sub-sample of children under five. The result suggests that a rise in the price of food negatively and significantly affect height-for-age, weight-for-age and weight-for-height measures of children nutritional outcomes. The effect of food policy on households and children nutritional outcome vary across food groups. It positively and significantly affects weight-for-height and weight-for-age measures of nutritional status indicators only for cereal and tuber food groups.