G8 Hits Impasse On Inflation

The threat of inflation to the global economy, coupled with slowing economic growth, has created a conflicting situation for economic policy responses. The complexity of the ensuing situation was exemplified in last weekend’s G8 finance ministers’ failure to reach consensus on the causes and solutions for rising inflation.

–The G8 communique expressed “strong concern” over the sharp rise in oil prices, which ministers noted have surpassed past peaks both in nominal and real terms, and the impact on global macro-economic stability, human welfare and development prospects.

Forbes