IFPRI Excessive Food Price Variability Early Warning System

The Excessive Food Price Variability Early Warning System is a tool of the Food Security Portal that identifies periods of excessive price variability (i.e. price variability that exceeds a pre-established threshold), and it is updated on a daily basis to identify days that are within periods of high, moderate, and low price variability. The tool is based on a statistical model that formally models the behavior (fluctuations) of commodity price returns (i.e. day-to-day percentage changes of commodity prices) using futures market prices closest to maturity. The instrument can serve as an early warning system for unusual periods of excessive price variability that could help for timely responses.