This bulletin examines trends in staple food and fuel prices, the cost of the basic food basket, terms of trade and consumer price indices for 71 countries in the second quarter of 2012 (April to June, Q2-2012)1.

Highlights

The global cereal price index declined further by 15 percent in Q2-2012 following a year-on-year decrease of 10 percent in the previous quarter. This downward trend is partially driven by global wheat andmaize prices which declined by 21 and 14 percent respectively during Q2-2012. The cereal price index would have fallen even more had it not been for a 19 percent increase in global rice prices during the same quarter.

The impact of staple commodity price changes on the cost of the basic food basket (Figure 1) is severe (above 10%) in only 4 out of 71 countries (Burundi, Congo Democratic Republic, Sudan and South Sudan), and high (between 5 and 10%) in 8 countries (Malawi, Mali, Mozambique, Sri Lanka, Syria, Tanzania, Timor-Leste and Zambia).

The most severe effects are driven by sweet potato prices in Burundi and sorghum prices in Sudan and South Sudan (Figure 2).