IMF worried about rising prices

The IMF says the global economy is in a tough spot, caught between sharply slowing growth in many developed economies and rising inflation everywhere. The agency's chief economist Simon Johnson said this is a very difficult moment for policy makers in almost every country. The IMF is becoming increasingly concerned about inflation.
Mr Johnson said the acceleration of price rises is a serious negative development. It's partly due to the rising food and energy prices, especially oil. But the IMF says that economic policy in some developing countries is also a factor.

The report predicts a modest slowdown in growth in the developing nations and Mr Johnson says that unless they take action to prevent inflation rising further the outcome could be substantially worse.