Oil, food price spikes may worsen global poverty: IMF

AFP, July, 2008

WASHINGTON (AFP) — Rocketing oil and food prices are being increasingly felt around the globe and surging commodity prices could worsen poverty in many poor countries, the International Monetary Fund warned Tuesday.

A new IMF study, looking at the impact of soaring oil and food costs, said many poor and developing countries will likely have to change their economic policies in response to soaring commodity prices.

"Some countries are at a tipping point," cautioned IMF managing director Dominique Strauss-Kahn.

"If food prices rise further and oil prices stay the same, some governments will no longer be able to feed their people and at the same time maintain stability in their economies," Strauss-Kahn said.

The IMF chief called for a "broad cooperative...