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.
- 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:
- Dairy products
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.