IMF sounds alarm over rising food, fuel prices

By MARK KAPCHANGA
4 May 2011 The International Monetary Fund is warning that poverty levels will rise in Africa, unless the current spike in food and fuel prices is arrested. In its latest world economic outlook on Africa, the Washington-based institution says the achievement of the Millennium Development Goals (MDGs) will be probably be delayed as a result of the weaker employment incomes. “With the advent of another sharp increase in food and fuel prices, the resilience exhibited by the region during the last few years is about to be tested again. These price shocks, coupled with the recovery, are likely to lead to higher inflation in most countries, and to deteriorating current account deficits in a number of fuel importers,” it said. The IMF revelation puts the Government in a tight spot, as thousands of graduates remain unemployed, in a country widely perceived to have a disregard for the talented brains. Kenya’s unemployment rate stands at 40 per cent, out of which 64 per cent or 10.2 million are said to be unemployed youth. …

IMF sounds alarm over rising food, fuel prices via The Oil Drum