The World - News from Feb. 7, 1985

Nicaragua’s Marxist-led government announced food price increases of up to 110%. The Ministry of Internal Trade raised the price of meat and milk by about 100%, with eggs going up 110% and chicken by more than 50%. Officials said the prices of basic grains and sugar are under review and may be raised later. This year’s Nicaraguan budget allotted 40% to the military, and the war against U.S.-backed rebels has resulted in a drop of dollar income because exports of major commodities--coffee and cotton--have been affected by fighting in the richest agricultural areas.