Global food prices reach record level in January

Global food prices jumped to record levels in January on higher dairy, sugar and cereal costs; they are projected to stay high throughout 2011 as well, the United Nations stated in a report.Global food prices jumped to record levels in January on higher dairy, sugar and cereal costs; they are projected to stay high throughout 2011 as well, the United Nations stated in a report.

The UN's Food and Agriculture Organization collected information about 55 food commodities and found that they increased in value 3.4 percent from December to 231 points - the seventh straight monthly increase. Dairy prices rose the most among the five different food categories, logging a 6.2 percent climb.The UN's Food and Agriculture Organization collected information about 55 food commodities and found that they increased in value 3.4 percent from December to 231 points - the seventh straight monthly increase. Dairy prices rose the most among the five different food categories, logging a 6.2 percent climb.

Commodities have been rising for the past year as global demand has eclipsed world stockpiles of essential goods including wheat, sugar, soybeans and corn. High food prices contributed to the toppling of the government in Tunisia and to the political instability and rioting currently going on in Egypt.Commodities have been rising for the past year as global demand has eclipsed world stockpiles of essential goods including wheat, sugar, soybeans and corn. High food prices contributed to the toppling of the government in Tunisia and to the political instability and rioting currently going on in Egypt.

Abdolreza Abbassian, a senior economist at the FAO, said in a statement that "the new figures clearly show that the upward pressure on world prices is not abating." He affirmed: "These high prices are likely to persist in the months to come." Abdolreza Abbassian, a senior economist at the FAO, said in a statement that "the new figures clearly show that the upward pressure on world prices is not abating." He affirmed: "These high prices are likely to persist in the months to come." 

In 2010, countries around the world spent more than $1 trillion on food imports, with the poorest nations paying prices that are often 20 percent higher than 2009 levels. The surging food and energy costs are spurring inflation in emerging markets and could fuel more civil unrest, Nouriel Roubini, a New York University economist who predicted the financial crisis, said in January.In 2010, countries around the world spent more than $1 trillion on food imports, with the poorest nations paying prices that are often 20 percent higher than 2009 levels. The surging food and energy costs are spurring inflation in emerging markets and could fuel more civil unrest, Nouriel Roubini, a New York University economist who predicted the financial crisis, said in January.