Question
Which of the following statements about the FAO Food
Price Index (FFPI) is correct? (I) It includes prices of meat, dairy products, cereals, vegetable oils, and sugar. (II) It tracks daily changes in international food prices. (III) The index is weighted based on average export shares from 2014-2016.Solution
The FAO Food Price Index (FFPI) measures the monthly change in international prices of a basket of food commodities, including meat, dairy, cereals, vegetable oils, and sugar. It is weighted based on the average export shares of these commodities from 2014-2016, but it does not track daily price changes.
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