At the beginning of each month, the Food and Agriculture Organisation of the United Nations (FAO) releases a series of price indices for a variety of food commodities (here). The headline FAO Food Price Index is a composite of five food groupings: meat, dairy, cereals, oils and fats and sugar. The base 100 is the indexed averaged price for the 2002-2004 period. The June 2013 index number was released on July 4th. Key points are as follows:
- The FAO Food Price Index averaged 211.3 for June 2013, down 1.9 points from the revised value of 213.2 for May
- The index was up 10.8 points from the 200.5 recorded in June 2012, or 5.4 percent
- In inflation adjusted terms, the Food Price Index stood at 140.3 for June 2013 against the 2002-2004 base of 100
The nominal and real price indices have followed a trajectory not dissimilar to the global oil price (click chart for larger image). Here is food:
And here is oil (click for larger image):
The drought in New Zealand has now broken, allowing the dairy component of the index to fall significantly from the April peak. Sugar prices also fell over the month. The sub-indices can be found here.