Answer & Explanation
Option: It is a measure of the monthly change in international prices of a basket of food commodities.
Explanation:
World food prices rose for a seventh consecutive month in December, with all the major categories, barring sugar, posting gains last month. The Food and Agriculture Organization’s (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, dairy, meat and sugar], weighted with the average export shares.
