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.