This article examines food price volatility in Greece and how it is affectedby short-run deviations between food prices and macroeconomic factors. Themethodology follows the GARCH and GARCH-X models. The results show thatthere exists a positive effect between the deviations and food pricevolatility. The results are highly important for producers and consumersbecause higher volatility augments the uncertainty in the food markets. Oncethe participants receive a signal that the food market is volatile, thismight lead them to ask for increased government intervention in theallocation of investment resources and this could reduce overallwelfare.