Low growth of consumer prices in developed world
Many important exporters currencies devalued further compared with the United States dollar
Commodity prices increased almost continuously over the year
Fuel prices went up by 70 per cent during the first half of 2016
Annual growth of the consumer price index, 2016 (Percentage)

Consumer prices and exchange rates

Economies that experienced noticeable inflation, as indicated by a growth in consumer prices of greater than 2 per cent, in 2016 comprised primarily transition economies as well as most developing economies in America, Africa (except Western Africa), Southern and Western Asia and Oceania. Inflation rates greater than 12 per cent were recorded for some economies, including Argentina, Kazakhstan, Ukraine, Venezuela and several African economies.

As in the previous year, 2016 was characterized by a depreciation of currencies for most main exporting economies, except Japan, relative to the United States dollar. The exchange rates of the pound sterling (down from 1.53 to 1.35) and the yuan (down from 0.16 to 0.15) to the dollar showed a particularly strong fall, whereas the value of the euro reduced only slightly from US$1.109 to US$1.106.

Figure 1Exchange rates against the United States dollar (Annual average)

Commodities free-market prices

In 2016, free market prices of the main commodities exported by developing economies showed, on average, a moderate and steady month-on-month growth. As a result, in the second half of the year commodity prices were higher than the previous year, and in December the year-on-year growth rate reached 16 per cent. Thus, 2016 marked a trend reversal after years of decline. This can be expected to have a positive impact on the terms of trade for developing economies with a strong reliance on commodities exports.

Figure 2Growth in commodity prices, 2016 (Percentage change of the commodity price index)

Note: Price index based on special drawing rights.

Prices of the different commodity groups

Price increases across commodity groups were not synchronous. In the first half of 2016, the strongest growth was recorded in the prices of fuels and all food, particularly vegetable oilseeds and oils; in the second half of the year, prices increased mainly for minerals, ores and metals and agricultural raw materials. By contrast, prices for all food steadily fell during the second half of the year, driven by a fall in prices of food other than tropical beverages, vegetable oilseeds and vegetable oils.

Figure 3Price indices by commodity group, 2016 (2000=100)
a
All food contains: food in the narrower sense, tropical beverages, vegetable oilseeds and oils.

Note: Price indices based on United States dollars.

Summary tables

Table 1

Development of consumer prices by group of economies

Group of economies

Consumer price index

Annual growth rate

(2005=100)

(Percentage)

2011

2016

2011-2016

2016

World

121

139

2.8

3.4

Developing economies

140

189

6.1

8.5

Developing economies: Africa

158

233

8.1

11.8

Developing economies: America

148

272

13.0

28.0

Developing economies: Asia and Oceania

136

164

3.8

2.9

Transition economies

180

276

8.9

8.0

Developed economies

113

119

1.1

0.7

Selected groups

Developing economies excluding China

147

212

7.7

11.3

Developing economies excluding LDCs

139

186

5.9

8.3

LDCs

178

288

10.1

15.6

LLDCs

169

253

8.3

14.8

SIDS (UNCTAD)

152

183

3.7

1.5

HIPCs (IMF)

161

217

6.1

6.1

BRICS

138

172

4.4

3.9

G20

118

132

2.2

1.9

Table 2

Exchange rate and consumer prices among main exporting economies

Economy
(Ranked by share in
world exports)

Exchange rate to

United States dollar

Consumer price index

Share in

world exportsa

(2005=100)

(Percentage)

2014

2015

2016

2014

2015

2016

2016

United States

1.00000

1.00000

1.00000

121

121

123

(e) 10.7

China

0.16278

0.16058

0.15050

131

133

135

10.6

Germany

1.32673

1.10907

1.10615

115

116

116

(e) 7.7

Japan

0.00944

0.00826

0.00919

102

103

103

3.9

France

1.32673

1.10907

1.10615

116

116

116

(e) 3.6

United Kingdom

1.64547

1.52778

1.35019

128

128

129

(e) 3.6

Netherlands

1.32673

1.10907

1.10615

117

118

118

(e) 3.2

Korea, Republic of

0.00095

0.00088

0.00086

127

127

129

2.9

China, Hong Kong SAR

0.12896

0.12900

0.12883

133

137

141

(e) 2.9

Italy

1.32673

1.10907

1.10615

118

118

118

(e) 2.7

Singapore

0.78923

0.72736

0.72382

129

129

128

2.5

Canada

0.90408

0.78180

0.75449

117

118

120

(e) 2.3

Switzerland

1.09152

1.03909

1.01498

104

103

102

2.1

India

0.01639

0.01559

0.01488

214

224

235

(e) 2.1

Spain

1.32673

1.10907

1.10615

120

120

119

(e) 2.0

Mexico

0.07523

0.06310

0.05358

144

148

153

1.9

Belgium

1.32673

1.10907

1.10615

119

120

123

(e) 1.9

United Arab Emirates

0.27229

0.27229

0.27229

105

109

111

1.8

Ireland

1.32673

1.10907

1.10615

113

112

112

(e) 1.7

China, Taiwan Province of

0.03293

0.03134

0.03094

112

112

113

1.7

a
Exports of goods and services
Find the data on UNCTADstat
Table 3

Indices of free-market prices of selected primary commodities

(2000=100)

Commodity

2010

2011

2012

2013

2014

2015

2016

All commodities

256

302

277

258

243

202

200

Food

230

265

270

255

240

204

207

Wheat (US, Hard Red Winter n° 2, FOB Gulf)

204

276

275

270

254

195

165

Maize (US, n° 3 yellow, FOB Gulf)

217

325

334

294

228

195

187

Rice (Thailand, white milled, 5% broken, FOB Bangkok)

256

271

285

255

209

187

191

Sugar (Caribbean ports, FOB bulk basis, I.S.A.)

260

318

263

216

208

164

221

Beef (Australia/New Zealand, US import price FOB port of entry)

174

209

214

209

255

228

203

Bananas, US importer's price, FOB US ports

210

233

235

221

222

229

239

Pepper (Indonesia, white Muntok, FAQ, ex-works Rotterdam)

139

219

226

226

291

333

276

Soybean meal (Hamburg, 44/45° protein, FOB ex-mill)

196

201

255

269

255

187

177

Fish meal (in bulk, 64/65% protein, free carrier price Bremen)

409

372

377

423

416

377

364

Tropical beverages

213

270

212

174

214

197

190

Coffee (Colombian mild Arabicas, ex-dock US)

218

277

199

145

193

146

152

Cocoa beans (Average daily prices New York/London)

353

336

269

275

345

353

326

Tea (Kenya, Best Pekoe Fannings 1, Mombasa auction prices)

125

140

141

107

96

137

116

Vegetables oil seeds and oils

262

333

307

269

253

203

226

Soybeans (US, n° 2 yellow, CIF Rotterdam)

212

255

279

257

232

184

191

Soybean oil (The Netherlands, FOB ex-mill)

297

384

363

313

269

224

239

Sunflower oil (In bulk, European Union, FOB N.W. European ports)

274

347

322

287

230

216

215

Groundnut oil (In bulk, any origin, CIF Rotterdam)

197

264

340

248

184

187

211

Copra (In bulk, Philippines/Indonesia, CIF N.W. European ports)

246

380

243

206

280

241

322

Coconut oil (In bulk, Philippines/Indonesia, CIF Rotterdam)

249

384

247

209

284

246

328

Palm kernel oil (In bulk, Malaysia/Indonesia, CIF Rotterdam)

267

372

250

202

253

205

291

Palm oil (Malaysia/Indonesia, 5% FFA, CIF N.W. European ports)

290

363

322

276

265

201

226

Agricultural raw materials

226

289

223

206

186

161

157

Linseed oil (In bulk, any origin, ex-tank, Rotterdam)

292

358

315

305

305

267

203

Tobacco (Unmanufactured, US import unit value)

144

150

144

153

167

164

160

Cotton (Cotlook A Index, Midd. 1-3/32", CFR Far Eastern)

175

258

150

153

139

119

125

Fine wool, 19 micron, Australia

140

223

183

163

146

137

152

Sisal (Tanzania/Kenya, n° 3 & UG, FOB)

161

210

236

222

254

320

339

Hide (US Chicago packer's heavy native steers, FOB shipping point)

90

102

104

118

138

109

89

Tropical logs, Sapele (Cameroon, high quality, > 80 centimeter, FOB)

175

199

185

190

190

159

158

Rubber (Technically specified rubber 20, New York CIF)

492

660

470

378

270

222

211

Minerals, ores and metals

327

375

322

306

280

218

205

Phosphate rock (Khouribga, 70% BPL, contract, FAS Casablanca)

281

423

425

339

252

269

253

Manganese ore index (44% Manganese, CIF Tianjin)

415

324

262

291

243

163

246

Iron ore (China import, spot, CFR Tianjin port)

184

210

161

169

121

70

73

Aluminium (Primary, high grade, London Metal Exchange, cash)

140

155

130

119

120

107

103

Copper (Grade A, London Metal Exchange, cash)

406

458

418

391

347

300

301

Nickel (London Metal Exchange, cash)

252

265

203

174

195

137

111

Lead (London Metal Exchange, cash settlement)

462

498

433

456

424

389

464

Zinc (Special high grade, London Metal Exchange, cash settlement)

192

194

173

169

192

171

185

Tin (London Metal Exchange, cash)

375

480

388

411

403

296

324

Memo item

Crude petroleum (Average of UK Brent, Dubai and Texas)

280

368

372

369

341

180

152

Note: Price indices based on United States dollars.

Find the data on UNCTADstat