IMF warning over inflation
Updated
The International Monetary Fund is warning governments around the world should focus on fighting inflation.
The IMF has lifted its 2008 inflation forecast to 3.4 per cent for advanced economies and just over nine per cent for emerging economies.
The IMF says growth in China will moderate from near 12 per cent last year to around 10 per cent this financial year.
IMF's Chief Economic Researcher Simon Johnson says prices are rising faster than expected.
"If decisive action is not taken against inflation in a timely manner, then we fear that the economic outcomes for 2009 could be substantially worse," he said.
