Abstract:
Food price inflation has been shown to have an adverse impact on the food security of households,
especially net buyers of food commodities in developing countries. The need of conducting this
research is basically to examine the effect of food price inflation on food security of urban
household’s in Bahir Dar city since there is everlasting increase in food price inflation is observed
in Ethiopia and also in cities. It was undertaken by selecting respondents through simple random
sampling in proportion from 4 out of around 17 kebeles of the city. Descriptive and inferential
statics of data analysis method have been employed. The descriptive statistics used to introduce
the background characteristics of the sample respondents and to strength the econometric model
results. The result of this descriptive statistics shows that around 151 from 395 respondents are
food insecure. Most the sample respondents were respond that there is high food price inflation
and this high food price inflation affects negatively the food security of 106 household. Also due
to such high food price inflation around 117 households switch his/her consumption from high
price food to low-cost food. Furthermore, the marginal effect after logit result shows the
probability of the household being food secure decrease by 10.47%, among households who are
responding that they are negatively affected by food price inflation than those who didn’t say. Also
due to price inflation of staple foods, when the household moves from purchasing main/nutrient
full foods to less expensive and poor testy foods, the probability of the household being food secure
is decrease by 11.15%. In addition to this if the household size is less, being the household male,
having own private house, having the higher monthly income , getting loan, having more saving
balance, and being more educated have a significantly probability of being food secure than
others.