Why is it in the news?

• The United Nation’s FAO recently reported that the world food price index fell to a new two-year low, reversing a previous month’s rebound.
  • Most food commodities experienced decreases, except for rice and sugar prices.

About FPI

• The Food Price Index (FPI) 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 price indices, which include:
• Cereals
• Oilseeds
• Dairy products
• Meat
• Sugar

Each of these commodity group price indices is weighted with the average export shares of each group.

• The FPI is used to monitor and report on changes in global food prices, reflecting the overall trends and fluctuations in food commodity markets.