FROM CNN

Tensions rise on surging food prices

NEW YORK (CNNMoney) -- Food prices have been rising worldwide, as the cost of raw materials and agricultural products surge, contributing to political unrest around the globe.

In December, international food prices broke an all-time high when they rose 25% for the year, led by rising costs for staples like rice, wheat, and maize, the United Nations reported.

The sharp rise in food prices, in particular, has become "a source of political instability," New York University economist Nouriel Roubini, told CNNMoney's Poppy Harlow, at the World Economic Forum in Davos, Switzerland this week.

Roubini, nicknamed "Dr. Doom" for his famously bearish predictions, said spiking energy and food prices pose one of the greatest global threats -- especially to emerging market economies.

Why prices are rising: Bad weather in Australia and Russia over the summer severely diminished wheat crops, partially fueling the latest commodities surge.

Rising incomes in emerging markets like China and India also play a role, analysts at the Eurasia Group say. The growing middle class in those countries has prompted a shift from a grain-based diet to one consisting of more meat.

And a push toward biofuels has also led to rising demand for corn and sugar, pushing up commodity prices.

Where it's hitting: The pinch has been felt most in rapidly developing countries like China, India, and Russia, which still have large portions of their population living in poverty.

Food inflation in China was recently at 9.6%, while in India it surged a staggering 18%.

Countries that depend on imports and don't grow a lot of their own grains, like many Middle Eastern nations, are also feeling the pain from price pressures. The recent turmoil there, with outbreaks of riots and violent clashes with police and military forces, is partially related to surging food prices.

"What has happened in Tunisia, is happening right now in Egypt, but also riots in Morocco, Algeria and Pakistan, are related not only to high unemployment rates and to income and wealth inequality, but also to this very sharp rise in food and commodity prices," Roubini said.

In Egypt alone, food prices soared 17% -- in part because of the worldwide surge in commodities prices but also because of local supply imbalances.

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FROM THE TELEGRAPH


Police may ban future marches to prevent disorder
Police may ban anti-Government marches through central London to prevent further disorder and strain on officer numbers.

By Martin Beckford, Heidi Blake and Steven Swinford
The Metropolitan Police Commissioner, Sir Paul Stephenson, said that outlawing the demonstations was an option for the authorities but conceded it could anger protestors further.

He admitted he was “very worried” about the effect on law and order in town centres and suburbs caused by large numbers of officers being sent to the centre of the capital.

Despite widespread criticism over the policing of the protests, and warnings that the Met’s tactics risk leading to the death of an innocent bystander, Sir Paul said he was proud of the professionalism of the 3,000 officers on duty last week.

It emerged that 182 people, most aged between 17 and 25, have been arrested in four demonstrations against state spending cuts and the planned rise in university tuition fees over the past month, with many of them described as ordinary students who did not set out to take part in riots and had not been in trouble before.

Detective Chief Superintendent Matt Horne said the number arrested could grow considerably as 80 officers study video footage.


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