Consumer Food Price Index (CFPI) measures changes in the retail prices of food items consumed by a defined population group in a given area with reference to a base year. The National Statistical Office (NSO) under the Ministry of Statistics and Program Implementation started releasing the CFPI for three categories – Rural, Urban, and Combined – separately on an All-India basis with effect from May 2014.
The Base Year for the Consumer Food Price Index (CFPI) is 2012, as in the case of CPI. Like the Consumer Price Index (CPI), the CFPI is also calculated on a monthly basis. The methodology of CFPI remains the same as that of CPI.
CFPI (Rural/Urban/Combined) is based on ten sub-groups contained in the “Food and Beverages” group of CPI.
- Cereals and products.
- Meat and fish.
- Egg.
- Milk and products.
- Oils and fats.
- Fruits.
- Vegetables.
- Pulses and products.
- Sugar and Confectionery.
- Spices.
Globally, the Food and Agriculture Organization (FAO) of the United Nations (UN) releases the Food Price Index. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices (Cereal, Vegetable Oil, Dairy, Meat, and Sugar) weighted by the average export shares of each of the groups over 2014-2016.
Also Read:
- Consumer Price Index (CPI).
- Wholesale Price Index (WPI).
- Difference between Consumer Price Index and Wholesale Price Index.