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Understanding how food demand responds to income and price changes is essential for anticipating global food needs and expected consumption patterns, and for designing effective food policies. Two key parameters for this are the income elasticity of demand—the percent change in consumption in response to a percent change in people’s income; and the price elasticity of demand—the percent change in consumption in response to a percent food price change. These are essential inputs in a wide range of economic models.

This blog post is part of a special series based on the October 2025 Commodity Markets Outlook, a flagship report published by the World Bank. This series features concise summaries of commodity-specific sections extracted from the report. Explore the full report here.

Food security conditions in the Gaza Strip have improved since August when the IPC Famine Review Committee confirmed the existence of famine conditions. Despite this improvement, however, 1.6 million people—most of Gaza’s population—still face unacceptably high levels of acute food insecurity, according to the IPC’s latest alert.

The FAO Food Price Index fell for the third month in a row in November, declining by 1.2 percent. Prices declined for all commodities except cereals. The Index in November stood 2.1 percent below its year-earlier level and nearly 22 percent below the peak of March 2022.

Currently, 80% of the world’s people rely on just three agricultural commodities as primary food staples: Maize, rice, and wheat. Production of these staple foods is concentrated in a small number of countries and regions, often called “breadbaskets.” At the same time, the incidence of climate-driven droughts, storms, floods, and related shocks is on the rise, creating large-scale threats to agricultural production in these areas. Recent research suggests that climate change will increase both the volatility of agricultural output and correlations across regions.