FOOD PRICE INDEX

Subject: International Report

Context: The value of the FAO Food Price Index (FFPI) from the Food and Agriculture Organization of the United Nations stood at 105 points in November 2020.

Concept:

• The FAO Food Price Index (FFPI) is a measure of the monthly change in international prices of a basket of food commodities.
• It consists of the average of five commodity group ( vegetable oil ,sugar, cereals, dairy and meat )price indices weighted by the average export shares of each of the groups over 2014-2016.
• A feature article published in the June 2020 edition of the Food Outlook presents the revision of the base period for the calculation of the FFPI and the expansion of its price coverage, to be introduced from July 2020.
• FAO Food Price Index registered a sharp rise in November to its highest level in nearly six years
• The FAO Food Price Index (FFPI) averaged 105.0 points in November 2020, up 4.0 points (3.9 percent) from October and 6.4 points (6.5 percent) higher than its value a year ago.
• The November increase did not only mark the biggest month-on-month rise since July 2012, but it also resulted in the index reaching its highest level since December 2014.
• All sub-indices of the FFPI registered gains in November, with the vegetable oil sub-index rising the most, followed by those of sugar, cereals, dairy and meat.
• The FAO Cereal Price Index averaged 114.4 points in November, up 2.7 points (2.5 percent).