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GS-III : Economic Issues Terminology

08 January, 2021
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World food price index by FAO

World food prices rose for a seventh consecutive month in December, with all the major categories, barring sugar, posting gains last month, the United Nations food agency said.
The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 107.5 points last month versus 105.2 in November.
For the whole of 2020, the benchmark index averaged 97.9 points, a three-year high and a 3.1% increase from 2019.
It was still down more than 25% from its historical peak in 2011.
Vegetable oil prices continued recent strong gains, jumping 4.7% month-on-month in December after surging more than 14% in November. For the whole of 2020, the index was up 19.1% on 2019.
The cereal price index posted a more modest 1.1% rise in December from the month before. For all of 2020, the index averaged 6.6% above 2019 levels.
Export prices for wheat, maize, sorghum and rice all rose in December, moving higher in part due to concerns over growing conditions and crop prospects in North and South America as well as Russia, the Rome-based FAO said.

Source: TH

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