Breakfast Index – Definition

Cite this article as:"Breakfast Index – Definition," in The Business Professor, updated May 15, 2019, last accessed June 1, 2020, https://thebusinessprofessor.com/lesson/breakfast-index-definition/.

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Breakfast Index Definition

The Breakfast Index was created by Hard Assets Investor (HAI), it is a price indicator that measures inflation in wholesales food prices. The breakfast index captures the food items mostly consumed as breakfast, these are cocoa, coffee, milk, wheat, butter, sugar, bacon and orange juice.

The breakfast index monitors or gauges inflation in the prices of these food items. The Bloomberg breakfast index on the other hand estimates how well individuals with average wages are able to afford typical breakfast, the food items listed above. This index measures both inflation and affordability of wholesale food prices.

A Little More on What is a Breakfast Index

This breakfast index estimates inflation by measuring the cost of breakfast items and comparing the cost to the Consumer Price Index (CPI). The eight food items that people eats as breakfast in the United States are measured to detect inflation.

The Bloomberg breakfast index estimates average wages of individuals and the cost of living in cities. How much people earn for a living is compared with their purchasing power or how affordable food items are in their cities. The Bloomberg breakfast index uses the amount of four food items in 129 cities of the world in estimating average wage and affordability of food items.

Aside from the Traditional Breakfast Index and the Bloomberg breakfast index, the FAO Food Price Index is another index used in measuring inflation of prices in foods items. FAO price index measures changes in price and inflation in food items at the International level while the traditional Breakfast index measures domestic changes in prices. Although, both uses breakfast items, the breakfast index considers the prices of eight food items, while the FAO measures the indexes of five items and not their prices. The Bloomberg breakfast index on the other hand tasks a look at the amount of food items and the average wage of individuals. It also measures inflation at the international level by comparing food prices and inflation across countries.

References for Breakfast Index

Academic Research on Breakfast Index

Trends in Maize Grain, Roller and Breakfast Meal Prices In Zambia, Kuteya, A. N., & Jayne, T. S. (2011). Michigan State University, Department of Agricultural, Food, and Resource Economics.

Breakfast cereals: The extreme food industry, Connor, J. M. (1999). Agribusiness: An International Journal, 15(2), 247-259.

POLICY SYNTHESIS FOOD SECURITY RESEARCH PROJECT–ZAMBIA, MEAL, T. I. B., & MARKETING, M.

Economies of Scale, the Lunch-Breakfast Ratio, and the Cost of USDA School Breakfasts and Lunches, Ollinger, M., & Guthrie, J. (2015). United States Department of Agriculture, Economic Research Service.

POLICY SYNTHESIS FOOD SECURITY RESEARCH PROJECT-ZAMBIA, Kuteya, A. N., & Jayne, T. S.

An Aggregate US Feed Grain Model, Meilke, K. D. (1975). Agricultural Economics Research, 27(1), 9-18.

Variety pass-through: An examination of the ready-to-eat breakfast cereal market, Richards, T. J., & Hamilton, S. F. (2015). Review of Economics and Statistics, 97(1), 166-180.

The Retail Service, The Market Power, and the Vertical Relationships in Breakfast Cereals Industry, Chidmi, B., Lopez, R. A., & Cotterill, R. W. (2009). In 2009 Conference, August 16-22, 2009, Beijing, China (No. 51770). International Association of Agricultural Economists.

Vertical Relationships in the Ready‐to‐Eat Breakfast Cereal Industry in Boston, Chidmi, B. (2012). Agribusiness, 28(3), 241-259.

Scanner indexes for the consumer price index, Richardson, J. D. (2003). In Scanner Data and Price Indexes (pp. 39-66). University of Chicago Press.

 

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