Poorer countries at 'tipping point' - IMF

The IMF says that the impact of surging oil and food prices is being felt globally, but is most acute in countries that rely heavily on imports and poorer ones, which have a higher percentage of their incomes going towards food and energy. Already in Botswana, inflation has been skyrocketing for the past eight months and there are no indications of it slowing down soon. Analysing the macroeconomic policy challenges arising from the price surges, the study argues that many governments will have to adjust policies in response to the price shock while the international community will need to do its share to address this global problem.

The IMF said oil and food prices were likely to ease only slightly as supply caught up, but admitted there was a lot of uncertainty in the outlook.