Statistics
 

Inflation in Consumer Price Index for Food

Highlights

  • During the last 5 years, the annual food price inflation in the world has decreased from 6.3% in 2013 to 3.6% in 2017 with divergent trends at regional level.
  • In Africa annual food inflation increased from 6% in 2013 to 14% in 2017.
  • Food prices remained nearly stable in Europe.
  • In Latin America, Asia, and Oceania the rate of inflation declined.

Chart 1: Food Consumer price inflation – Global and regions

Sources: IMF, UNSD, OECD and national statistics’ websites, FAO Statistics Division for the calculation
  • Global Food Price Index (FPI) of FAO, based upon international commodity prices, usually the leads the movements in the Food CPI. The volatility in FPI is not fully passed on to global Food CPI due to national barriers in price transmission from international markets to domestic consumer markets and the effect of averaging across countries.

Chart 2: Inflation: FPI and Food CPI

Source: IMF, UNSD, OECD, national statistics’ websites and FAO (http://www.fao.org/worldfoodsituation/foodpricesindex/en/), FAO Statistics Division for the calculation

Note to Readers

Note to Readers

Definitions and Acknowledgements

Global and Regional Food Consumer Price Indices (CPI) measure food inflation for a group of countries at different geographical scales: sub-regional (e.g. South America), regional (e.g. Americas) and global (all countries). The Global Food CPI covers approximately 180 countries worldwide representing more than 95% of the world population. Unless otherwise stated, monthly inflation rates represent annual year-over-year inflation.

Aggregation uses population weights, which may better reflect the impact of food inflation on consumers than Gross Domestic Product (GDP) weights. The use of GDP weights also gives higher importance to countries less exposed to food insecurity, as consumers in countries with higher GDP tend to be richer, spend a lower proportion of their income on food, and benefit from an economic environment characterized by lower and less volatile consumer price inflation.

The sources of official country CPIs includes the International Monetary Fund (IMF), the UN Statistics Division(UNSD), the Organisation for Economic Co-operation and Development (OECD), the Latin America and the Caribbean statistics (CEPALSTAT), Central Bank of Western African States (BCEAO), Eastern Caribbean Central Bank (ECCB) and national statistical office website . We gratefully acknowledge the Statistics Division of the ILO for their methodological and technical guidance on the compilation of global and regional food inflation indices. In 2015, the IMF took over from the ILO the responsibility for compiling an international database of official national CPIs, as per an agreement between the IMF, the ILO and FAO.

Global and regional food CPIs should be interpreted with caution due to conceptual and methodological differences across countries in the compilation of their official CPIs.

Next release

Country Consumer Food Price Indices are updated in FAOSTAT on a quarterly basis. The next release presenting global and regional trends will be in December.

Contact information

For more information, or to enquire about concepts, methods or data quality, contact the Price Statistics Team of FAO’s Statistics Division (Price-Statistics@fao.org)