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Rising Price Pressures Spur Concerns
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Inflation is a problem in developing countries of Asia, Africa and the Arab world. Zhu Min, a Chinese economist pointed out the significant impact of a rise in food prices in India and China. Food makes up 47% of the basket of products used for India's consumer price index and 34% for China. Rising food prices hurt the poorer sections of the Indian people, said Azim Premji, chairman of Wipro. This could result in political uncertainty. A rise in prices in Tunisia, Algeria and Egypt is leading to street protests.
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