Macquarie launched a new index in December that will benchmark and forecast food and agricultural prices, and is intended to help indicate the direction of food inflation.
The Macquarie Agricultural Commodity Price Index, or MacPI, was designed by Macquarie Commodities Research, and is the first index of its kind whereby it will indicate food inflation for the industry and economists.
The index will track the price of futures contracts for 28 agricultural commodities traded on international exchanges and is constructed using a consumption-weighted, rather than a trade-weighted, methodology. This is intended to reflect each commodity in terms of global consumption.
While there are a number of similar commodity indexes already in existence, this is thought to be the first corporate index of its kind for forecasting prices.