Category: news

Food prices have been rising across the world

Global food prices rose to a fresh high in December, according to the UN’s Food and Agricultural Organisation (FAO).

Its Food Price Index went above the previous record of 2008 that saw prices spark riots in several countries.

Soaring sugar, cereal and oil prices had driven the rise, the report said.

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

It stood at 213.5 points at the high of June 2008.

However, despite high prices, FAO economist Abdolreza Abbassian said that many of the factors that triggered food riots in 2007 and 2008 – such as weak production in poor countries – were not currently present, reducing the risk of more turmoil.

But he added that “unpredictable weather” meant that grain prices could go much higher, which was “a concern”.

Last year a drought forced Russia to suspend wheat exports.

And recent floods in Queensland, Australia are already beginning to hit prices of key exports – which are critical for food supplies to markets in Asia, particularly India, Bangladesh and Japan.

Australia has cut its forecast for sugar exports this year by 25% as flooding has reduced the sugar content of the cane, while wheat crops have also been hit.

The news came amid concerns about inflation in the prices of other key commodities.

The International Energy Agency (IEA) said on Wednesday that the current high price of oil would threaten economic recovery in 2011.

Oil import costs for countries in the Organisation for Economic Co-operation and Development had risen 30% in the past year to $790bn (£508bn), it said.

And copper prices went into 2011 at record highs – in a rally driven by increased demand from the global economic recovery and that fact that most countries are holding low stockpiles.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Rising fuel prices have been painful, the PM said

David Cameron says he is looking at a way to “share the risk” of higher fuel prices between government and drivers.

The Conservatives have previously looked at the possibility of cutting fuel duty when oil prices rise, and increasing it when prices fall.

The PM said he was “working with the Treasury” on the idea and said rising prices had been “painful” for drivers.

Shadow transport secretary Maria Eagle accused him of “reheated promises” and said motorists would not be fooled.

Mr Cameron was speaking at the Caterpillar plant in Leicester when he was questioned about fuel prices, which have topped £1.30 a litre for unleaded and £1.35 a litre for diesel.

He told the audience the recent increase in fuel duty had been part of Labour’s tax plans which they had to put into place. Combined with the rise in VAT to 20% he admitted it was “very painful and difficult” for motorists.

The prime minister said it was partly due to rising oil prices but added: “I think we also need to ask ourselves this question, and I am working with the Treasury on this.

“Is there a way in which when the oil price goes up, if the Treasury is getting more revenue out of that oil, can we find a way of sharing that risk with the consumer, ie if the price goes up, the tax comes down, and if the price goes down, the tax goes up.”

He added: “We are looking at it. It’s not simple, it’s not an easy thing to put in place but I would like to try and find some way of, as I say, sharing the risk of higher fuel prices with the consumer.

“At the moment I think they feel they are bearing all of the burden so we are looking at this because we do want to try and help people.”

In 2008 when in opposition, the Conservatives proposed a “fair fuel stabiliser” – something that was criticised by the then Labour government who said it could leave a £3bn hole in public finances. It was also criticised at the time by then Lib Dem Treasury spokesman – now business secretary in the coalition government – Vince Cable.

But in the Budget in June, the coalition government said it had asked the Office for Budgetary Responsibility to assess the effect of oil price fluctuations on public finances over the summer. It said it would then “examine options for the design of a fair fuel stabiliser”.

Labour leader Ed Miliband had accused the Conservatives of breaking promises made on the fuel duty stabiliser earlier this week. On Wednesday Labour’s shadow transport secretary Maria Eagle said: “Motorists won’t be fooled by David Cameron’s reheated promises to look again at fuel prices. He’s promised a fuel duty stabiliser before and hasn’t delivered.

“His warm words won’t mean much to motorists who this week have seen a VAT rise forcing up prices at the pump.

“With rail fares up by an unacceptable 10% on many routes, commuters are being hit in the pocket whichever way they try and get to work.”

The International Energy Agency has warned the high price of oil will threaten economic recovery in 2011 and is entering “a dangerous zone”.

The price of US light oil rose to a 27-month high earlier this week, but has since fallen back to $88.98 (£57.54) a barrel, with Brent Crude at $93.15.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

John Boehner has said newly empowered Republicans will listen to the American people

Republicans will take control of the US House of Representatives when the US Congress meets shortly, vowing to cut spending and repeal health reform.

The new Congress is being sworn in two months after mid-term elections which saw President Obama’s Democrats suffer heavy losses to the opposition.

Democratic leader Nancy Pelosi will turn over the speaker’s gavel to John Boehner, a Midwestern conservative.

A BBC correspondent says the stage is now set for ideological battle.

The Republicans control the House for the first time in more than four years, while the Democrats have only a slim lead in the Senate.

The BBC’s Paul Adams, in Washington, says there are tough fights ahead as the president, determined to press ahead with his reform agenda, locks horns with a Republican Party emboldened by its successes in November.

Republican leaders have vowed to slash spending by as much as $100bn, scrap “job-killing” government regulations, overhaul the tax code, crack down on undocumented immigration, cut diplomatic and foreign aid funds, and investigate the administration.

As soon as next week, the Republicans will launch what is being seen as a symbolic move to repeal President Obama’s most ambitious legislative effort so far: the reform of America’s healthcare system.

The move is expected to pass in the House, but fail in the Senate, but will be followed by a protracted attempt to pick the reform to pieces, our correspondent says.

Add to this a series of bitter debates over spending and how to control the country’s budget deficits, and the scene is set for a tempestuous political season, our correspondent adds.

On Thursday, the Republicans will have the US Constitution read aloud in the House chamber, a gesture in line with many conservatives’ view that Democrats have overstepped their authority in passing sweeping regulations.

The Republican Party seized control of the House in the November mid-term elections thanks in part to the anti-government Tea Party movement, which sprang to life in 2009 in protest against Mr Obama’s economic stimulus effort and bid to reform healthcare.

Speaking as he flew back from holiday in Hawaii on Tuesday, Mr Obama said he expected Republicans “to play to their base for a certain period of time”.

He added: “I’m pretty confident that they’re going to recognise that our job is to govern and make sure that we are delivering jobs for the American people and that we’re creating a competitive economy for the 21st Century; not just for this generation but the next one.”

But AB Stoddard, a columnist with the congressional newspaper, The Hill, told the BBC Congress was more polarised than ever.

“We have a different makeup in a new Congress controlled on the House side by Republicans, a lot more conservative, Tea Party backed freshmen coming in.

“They are not in the mood to help President Obama and the Democrats with any of their initiatives, so the dynamic will shift dramatically.”

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Some 800 soldiers go on trial in Bangladesh charged with murder and other crimes committed during a bloody mutiny in 2009.

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The News of the World says it has suspended one of its staff following “a serious allegation” of wrongdoing.

A spokesman for the newspaper said the individual had been suspended from active duties just before Christmas.

He said the allegation was the subject of legal action as well as an internal investigation and, if proven, “appropriate action” would be taken.

“The News of the World has a zero tolerance approach to any wrong-doing,” the spokesman added.

The News of the World is the UK’s biggest selling Sunday newspaper, shifting more than 2.7 million copies each week on average in November.

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A 10-year-old Canadian girl has become the youngest person in the world to find a supernova, the Royal Astronomical Society of Canada has confirmed.

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Carcinogenic chemical material is said to be stored at the Chemie-Pack plant

The southern Netherlands is on its highest state of alert after a blaze at a chemical plant near Rotterdam sent out a thick cloud of smoke.

The cloud from the fire at Moerdijk was floating north and had reached the city of Dordrecht, Dutch media said.

Some 400,000 litres of carcinogenic material are stored at the Chemie-Pack plant, De Telegraaf says.

There were no reports of casualties and local officials said it was unclear if toxic fumes had been released.

Troops were helping to tackle the flames, said to be many metres high.

Residents in Dordrecht were being warned to keep windows and doors shut.

Chemie-Pack, which is about 40km (25m) south of the port of Rotterdam, processes and packs products for the chemical industry, the company says on its website.

A Shell refinery in the Moerdijk industrial zone was not affected by the fire, a spokesman told Reuters news agency.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.