Inflation risks are expanding globally as the Consumer Price Index (CPI) surged dramatically in many countries, including Russia, India and Brazil, in addition to China, the National Development and Reform Commission (NDRC) reported recently.

 

According to the report, several countries, including Russia, South Africa and India, experienced an increase in their CPI above five percent this September and October. The index in China grew 6.5 percent in October, making its inflation the eighth biggest in the world. The rate in Brazil declined slightly from 4.1 percent in September to 3.3 percent in October.

 

Although the inflation rates rose at a slower pace in the developed countries, they showed no trends to decline, the report said. The index was up 3.5 percent in the United States in October and 2.6 percent in European Union, 0.6 percent higher than European Central Bank's estimate.

 

Successive economic growth, liquidity surplus and the depreciation of US dollars have all spurred global inflation, the NDRC said in its report. Additionally, consumer prices have swelled due to a supply decline in agricultural countries, oil controls from the Organization of the Petroleum Exporting Countries (OPEC), global fund speculations and surging demands for biological fuels. The NDRC also said that the year 2007 has witnessed consecutive price surging in oil, iron ore and agricultural products.

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(China.org.cn December 5, 2007)