What is the food price index?

Food Price Index is measurement that shows the average price of food and why food prices rise or fall. Five data on food prices are diameted together to create a total price index; They are: cereals, sugar, oil and fats, meat and dairy products. Along with the display of food price, this index describes in detail what factors cause the price of food to rise or decline. Normal factors include exporting and import prices, the amount of food produced and natural disasters that affect the level of production. While consumers can look at the food price index to see why food prices are changing, this scale is intended for politicians and food manufacturers to show more what prices affect, so if necessary, factors can be repaired.

The food price index is given six numbers, but only five of them are real measurements; The sixth average another five together. The cereal index does not measure packed cereals prices but rice and wheat that goes to createCereal. Milk measurement concerns eggs, milk and dairy products, while the meat index records the total spectrum of meat, including beef, pork and poultry. While it is called oil and fat index, this measurement focuses only on the price of oils such as soy oil, olive oil and rapeseed oil. The sugar index is measured and the price of sugar is displayed - no matter what form it is.

Along with the display of differences in food prices for a given month, the food price index also describes in detail why prices are changing. Sometimes the reasons can be as simple as wheat may be badly selling badly one month or countries reducing prices and reducing transport costs for this month. A natural disaster is another common reason because one can eat a field of crops or kill many animals, which reduces overall production. If food products are used for something else, Such as biopalIva, it can also affect prices.

While the graph of the food index is accessible to anyone, it is not entirely intended for consumers, because the graph tells consumers only if prices are falling or rising and why. This chart is intended for more for politicians and food manufacturers, because they have the power to change food prices by changing the factors that affect the price of food. The food price index can also show politicians what countries may have over food acquisition, which can help them stop any quarrels.