G8 ministers on price threats

Global inflation concerns are mounting and so finance ministers from the Group of Eight nations have made a continued warning that surging food and fuel prices are threatening the global economy, amid the current uncertain economic climate which was debated at Osaka, Japan.

The meeting is set to cover a range of current issues such as the troubled financial markets and global warming.

With oil prices close to 140 dollars a barrel last week, coupled with the difficulties relating to the stability of prices in essential commodities such as corn, wheat, rice and soya beans, the G8 ministers will be setting the agenda for the next summit in northern Hokkaido next month.

The ministers did agree that the current turmoil of the US housing market, as well as the financial markets are risks to continued growth. Although the global economic outlook is upbeat following the aftermath of the credit crunch when compared to the previous meeting back in April.

Mario Draghi, the head of the Financial Stability Forum, said tighter credit conditions are no longer the biggest threat to the global economy compared to the fragile instability of both the financial markets and global inflationary pressures.

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