Inflation is in your imagination...so says Mr. Gov't

Global food prices hit record high, says UN

Global food prices have surpassed 2008 highs when shortages led to riots in a number of countries, the United Nations reported on Wednesday.

A sugar cane cutter in Brazil. Sugar prices recent 30-year peak at the end of last year 

Reuters 1:32PM GMT 05 Jan 2011

The FAO Food Price Index rose to a record high in December, the UN Food and Agriculture Organisation said.

Up for the sixth month in a row and fuelled by surging sugar prices and rises in cereals and oils, the index was the highest since records began in 1990, in nominal terms, and topped the high of 213.5 in June 2008, during the food crisis of 2007/08.

The index, which measures monthly price changes for a food basket composed of cereals, oil seeds, dairy, meat and sugar, averaged 214.7 points last month, up from 206.0 points in November.

The FAO's Sugar Price Index soared to a record high of 398.4 points from 373.4 points in November.

Its Cereals Price Index, which includes prices of main food staples such as wheat, rice and corn, rose to an average of 237.6 points in December, the highest level since August 2008 and up from 223.3 points in November.