Food price volatility

Definition

Domestic food price volatility index measures the variation (volatility) in domestic food prices over time, measured as the relative variation in the domestic food price index, a standardized measure of the cost of a basket of goods. High values indicate a higher volatility (more variation) in food prices.

Relevance

Different indicators can be used to assess the long-term outcomes of a system resilience. In the case of food systems, the ability of the system to maintain a low price-volatility in the face of shocks, is a direct way to assess the system resilience. The lower the volatility, the better.

Additional Information

Recommended citation: FAO. 2025. FAOSTAT: Consumer Price Indices. [Accessed the first week of every month]. https://www.fao.org/faostat/en/#data/CP. Licence: CC-BY-4.0 and Schneider, K.R., Fanzo, J., Haddad, L. et al. 2023. The state of food systems worldwide in the countdown to 2030. Nat Food 4, 1090–1110. https://doi.org/10.1038/s43016-023-00885-9