FAO Food Price Index

The FAO Food Price Index remained nearly unchanged in April; however, cereal and dairy prices continued to rise.

The Cereal Price Index rose 1.7 percent from March, reaching almost 16 percent higher than its April 2017 levels. This is the fourth consecutive month of such increases, which are being driven largely by weather-related fears for wheat and maize and government purchases in Indonesia and the Philippines for rice.

Despite a 3.3 percent decline in December, the FAO Food Price Index saw an overall increase for 2017 as a whole. The Index rose 8.2 percent from 2016 to reach the highest annual average seen since 2014. The increase was driven mainly by sharp increases in dairy and meat prices, but international cereal prices also experienced a modest increase in 2017.

The latest editions of the FAO Food Price Index and AMIS Market Monitor are both now available for September. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of five food commodity groups; the monthly AMIS Market Monitor covers the international markets for wheat, rice, maize, and soy and provides an overview of the market situation and outlook for each of these crops.

The FAO Food Price Index, released today, fell slightly in November but remains 10.4 percent higher than its November 2015 level. This month's small decline, driven mostly by falling oil prices, interrupted the rising trend seen since the start of 2016.

The Cereal Price Index fell 0.6 percent in November and is as much as 12 points below its year-earlier level. Good global supply prospects, particularly for wheat in Argentina and Australia, have supported this decrease.

The latest editions of the FAO Food Price Index and AMIS Market Monitor were both released on November 10. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of five food commodity groups; the monthly AMIS Market Monitor covers the international markets for wheat, rice, maize, and soy and provides an overview of the market situation and outlook for each of these crops.