The "BRIC" nations - Brazil, Russia, India and China - are all experiencing rising inflation and adopting similar measures to prevent prices of goods spiraling out of control, according to a report by China's National Development and Reform Commission (NDRC).
The NDRC said the global price hikes were the result of a combination of factors: the sustained growth of the world economy, a global problem of excess liquidity, the falling dollar, a decrease in the production of farm products, OPEC's output restrictions, excess speculative capital in the international markets and an increase in the demand for grain used to produce bio-fuel.
The report shows that Russian CPI growth topped the BRICs, with a rise of 10.8 percent in October. The CPIs of India and China were 6.7 percent and 6.5 percent respectively, while that of Brazil was 3.3 percent.
Developed nations are not immune to price hikes. The CPI also went up 3.5 percent in October. Both the U.S. and the EU decided to reduce their farm product exports to developing countries, which further aggravated the situation in emerging economies.
To curb price rises and ease inflation pressure, the BRICs and other governments are adopting similar measures to counter the inflation trend, notably using financial tools, price regulation and market adjustment, food subsidies to low-income groups and the adjustment of import and export to increase domestic market supply, according to the report.
The National Development and Reform Commission (NDRC) is a macroeconomic management agency under China's State Council, which formulates policies for economic and social development and guides the restructuring of the overall economic system.
Source: Xinhua
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