U.N. Data Notes Sharp Rise in World Food Prices.

U.N. Data Notes Sharp Rise in World Food Prices.World food prices continued to rise sharply in December, bringing them close to the crisis levels that provoked shortages and riots in poor countries three years ago, 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 adequate stockpiles of key grains, could prevent a serious problem. The United Nations data measures commodity prices on the world export market. Those are generally far removed from supermarket prices in wealthy countries like the United States. In this country, food price inflation has been relatively tame, and prices are forecast to rise only 2 to 3 percent this year. Joseph Glauber, the Agriculture Department’s chief economist, said that rising world commodity prices could be expected to have their greatest impact in this country on meat and dairy prices because they can push up the price of livestock feed. As feed prices go up, farmers often cut the size of herds, meaning less meat ultimately reaches the market. Beef, pork and dairy prices rose faster last year than overall food prices and are expected to continue that trend this year.Read the full story here.