Kuala Lumpur: Price pressures remain the biggest worry for Asia, where high inflation is already threatening to spoil the gains made against poverty over the last two decades, the Asian Development Bank said on 15 June.
“We are concerned that rising food and fuel prices will make dent in the fight against poverty,” Rajat M. Nag, managing director general of the ADB, told Reuters in an interview.
“We are concerned that the gains that Asia has shown in the last two decades, which has been very remarkable in the fight against poverty, can start to be endangered because of inflation,” he said on the sidelines of the World Economic Forum on East Asia meeting in Malaysia’s capital.
The ADB has forecast Asian inflation at 5.1% for 2008, but Nag said it would probably be higher.
“Our forecast for 2008 is 5.1% and that will be the highest in a decade. This was done in April and we are updating, and I am sure the numbers will be probably higher,” he said.