FAO Food Price Index (FFPI)

News: According to Food and Agriculture Organization’s (FAO) Food Price Index, Global food commodity prices rose for the second month in a row in July 2025.

About FAO Food Price Index (FFPI)

• It is a food price index by the Food and Agriculture Organization (FAO) of the United Nations.
• It measures international price movements of a basket of food commodities over time, in nominal and real terms.
• Commodity coverage
  • The Index encompasses 24 basic food commodities that are globally traded.
  • These commodities are grouped into five major groups – cereals, dairy products, vegetable oils, sugar and meat, for which a respective price index is calculated.
• Aggregation: The five commodity group price indices are combined by weighting them with the average export shares of each of the groups for 2014-2016.
• These trade weights are sourced from the FAOSTAT database.
• Prices: In total 95 commodity quotations (export, spot, prices), all expressed in terms of US Dollars, are included in the FPI.
• Base period: 2014-2016
• Index form: Laspeyres
• Frequency and span: Monthly from January 1990 and annual from 1961
• Deflator: World Bank’s Manufactures Unit Value Index (MUV).

About Food and Agriculture Organization’s (FAO) The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger. Foundation: It was founded on 16 October 1945. Goal: Its goal is to achieve food security for all and make sure that people have regular access to enough high-quality food to lead active, healthy lives. Members: 195 members – 194 countries and the European Union, FAO works in over 130 countries worldwide. India is also a member. Headquarters: Its headquarters is in Rome, Italy.