Price Trend Analysis: A Case Study from Amravati District, India

This study tried to understand the price movements of selected commodities in urban and rural areas of the Amravati district. The price that can be commended for the new products and the volumes of the products that are sold determine, in large measure, the returns that will be made on the initial investment. It is observed that the average prices of commodities undergo fluctuations over the years where price movement of all commodities varies from each other depending upon the nature of the commodity and its market. It is also observed that rural prices are higher than urban prices. The analysis is simply based on the graphical presentation and inflation rate. The inflation rate has derived from the percentage increase in the price over the years. The prices of commodities are the aggregate of quarterly prices of selected commodities. It questions the belief of low cost of living in rural areas excluding housing and other social infrastructure. It is stated that inflation is driven by many socio-economic micro and macroeconomic variables.