Effects of food price volatility on food security in rural Ethiopia: a panel data analysis

Food security (FS) and prices are closely correlated. This study examined the effects of food price volatility on FS in rural Ethiopian communities using data from a national household survey and logistic regression analysis. The findings show that food price volatility significantly negatively affects food consumption, possibly increasing the likelihood of food insecurity by 94 per cent for every 0.0085 USD increase in average food prices. This effect is noticeable for low-income households whose members have limited formal education, and they can affect neighbouring households. Potential solutions include improving access to inclusive credit, exploring alternative markets, prioritising gender-based education, diversifying income sources, and implementing supportive policies.