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SDG 2.c.1_Indicator Of Food Price Anomalies For The Philippines

Year: 2021
Author: Manuel Leonard F. Albis

Abstract:

High volatility in food prices poses risks to both consumers and producers. A sudden upward change in the price of food implies lower purchasing power of the currency resulting in a reduced quantity of food that can be bought. At the extreme, it would also negatively affect the earnings of the producers as the consumers would look for substitutes at a lower cost. The role of the government is to minimize price volatilities as the market recalibrates to equilibrium. The main objective of the study is to generate SDG Indicator 2.c.1 for the Philippines. This study localizes, for the Philippines, the official Food and Agriculture Organization (UNFAO) of the United Nations methodology to calculate the indicator of food price anomalies (IFPA) Indicator 2.c.1. Food indices and prices from the PSA are used to produce the IFPA. The localized IFPA produced signals for the historically high inflation periods. The localized methodology can also be applied to farmgate, wholesale and retail prices of food. This may help in identifying prospective price anomalies by analyzing farmgate to retail price dynamics.

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