Food Prices Will Continue To Rise

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U.N. Food Price Index Jumps in December (by William Neuman, New York Times)

EXCERPT: World food prices rose sharply in late 2010, bringing them close to the crisis levels that provoked shortages and riots in poor countries two years earlier, according to newly released United Nations data. Prices are expected to remain high this year, prompting concern that the world may be approaching another crisis, although economists cautioned that many factors, like healthy supplies of key grains, could prevent that. The food price index of the United Nations Food and Agriculture Organization rose 32 percent from June to December, according to the new data. In December the index was slightly higher than it was in June 2008, its previous peak. The index is not adjusted for inflation, however, making it difficult to make an exact comparison.