U.S. Eastern Time March 18 (Beijing time on March 19) news, the International Monetary Fund (IMF) report released said the global food prices will continue to steadily rise, or will result result in core inflation.
On Thursday, the International Monetary Fund released research report, the Fund's price index is now close in June 2008 the highest level. IMF economists believe that since 2000, continuing a steady rise in food prices seems to be a trend, rather than temporary factors.
IMF said in a report, in early 2011 the international food prices have caused many economies, consumer price inflation, such a direct "first-round effect " is a normal part of the price through, will fade over time. However, if people continue to rise in food prices is expected to demand higher wages, which would lead to "second-round effects", that the core inflation rate.
IMF economist Thomas - Helbling (Thomas Helbling) and Sean - Roach (Shaun Roache) pointed out that global commodity prices may have to adjust to a higher level. Due to inclement weather, trade restrictions, bio-fuel development, and people are getting richer and the resulting higher demand for food and promote food prices continued to rise. Technological advances and the expansion of food production area help ease the pressure on the grain market, but it takes time. In the interim, the global market may have to raise food prices.
The report also noted that many countries are working to curb high food prices. High food prices not only increase poverty and inflation, and the impact of imported food, the country's international balance of payments. However, the risk of core inflation has little effect on advanced economies, but the impact of emerging and developing countries is very significant. (Section Jiao Yu)