Go Finance reported WASHINGTON - Officials of the International Monetary Fund (International Monetary Fund / IMF) yesterday warned that the overall developing countries are now faced with inflation.
This condition is triggered by rising food and commodity prices. "The price of food and oil has increased since 2010, not only in response to strong global demand, but due to limited supply because the harvest season disrupted," said IMF Deputy Managing Director Naoyuki Shinohara in Colombo, Sri Lanka yesterday.
He added that the trend of rising food prices will continue this year. According to him, especially in Asia's core inflation rate also has increased approximately one percent above other area because of the pressure rise in almost all commodity prices.
Facts rising inflation in Asia, said Shinohara, on the one side makes a blessing for some workers because their wages raised. Shinohara statement refers to the policies of local governments in China since last year to increase wages of workers to cope with skyrocketing prices.
Previously, the IMF estimates, the Asian economic growth this year will still be moving faster than other regions at about 8.5 percent. Concerns skyrocketing inflation is also a concern seasoned investor Warren Buffett.
He said the improving economy require the support of government spending and the central bank in managing monetary policy.
"We will follow the policy of the monetary authorities, including giving attention to the inflation rate in terms of our investment," said the owner's investment company Berkshire Hattaway.
In Europe, the European Central Bank (European Central Bank / ECB) will conduct anti-inflation measures as an effort to fight rising prices and food commodities.
One way is likely hoist interest rates by the end of this year. Just to note, the rate of eurozone inflation in February reached 2.4 percent, the highest since October 2008. Figures above the ECB target of two percent for the first three months of 2011. (GoFinance)
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