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U.N. says food prices at record levels

UNITED NATIONS, Jan. 5 (UPI) -- The U.N. Food and Agricultural Organization says global food prices rose to a new high in December, above the previous record of 2008.

The FAO Food Price Index saw an increase driven by soaring sugar, cereal and oil prices, the BBC reported Wednesday.

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The index of monthly price changes for a food basket composed of dairy, meat, sugar, cereals and oilseeds averaged 214.7 points last month, up from 206 points in November.

When it hit 213.5 points in June 2008 it sparked violent protests over food prices in countries including Cameroon, Haiti and Egypt, the BBC said.

"Unpredictable weather" meant grain prices could go much higher, FAO economist Abdolreza Abbassian said, which was "a concern."

Last year Russia suspended wheat exports because of drought, and recent floods in Queensland, Australia, are already beginning to drive up prices of key exports critical for food supplies in markets in Asia, particularly India, Bangladesh and Japan.

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