Food Price Heterogeneity and Income Inequality in Malawi: Is Inequality Underestimated?

Food prices maybe regressive in the sense that the poor compared to the non-poor pay more for food (e.g. Attanasio and Frayne, 2006; Beatty, 2010; Gibson and Kim, 2013).
Reasons for this poverty penalty (see e.g. Muller (2002) and Mendoza (2011)); Serving the poor may be more costly, the poor face greater liquidity constraints(They buy food in small quantities, hence not enjoy quantity/bulk discounts which leads to higher unit prices), liquidity constraints and a lack of proper post harvest storage facilities or a combination of both( the poor to buy food at suboptimal periods), Higher search costs (poor paying more for food)