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To: Chaka who wrote (59172)4/22/2006 8:56:52 PM
From: shades  Respond to of 110194
 
IMF: Inflation Contained But World Econ Slack Diminishing

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WASHINGTON (Dow Jones)--Economic policy-makers will have to remain vigilant against an upsurge in inflation amid strong growth in world output, the International Monetary Fund's policy-steering committee said Saturday.

"Inflation and inflationary expectations remain well-contained - although with excess capacity diminishing continued vigilance will be required," finance ministers on the International Monetary and Financial Committee said in a statement released after their spring meeting.

The world economic expansion has become more broad-based, and the outlook for growth "remains strong in the next couple years," the ministers said. The healthy economy presents an opportunity for much-needed reductions in public budget deficits, notably in the U.S., they said.

Risks to the outlook include "high and volatile oil prices, the potential for an abrupt shift in global financial market conditions, a rise in protectionism, and a possible avian flu pandemic," the ministers said.

Ever-widening trade imbalances are also a serious threat to financial stability, they said.

"The committee reiterates that action for orderly medium-term resolution of global imbalances is a shared responsibility, and will bring greater benefit to members and the international community than actions taken individually," according to the committee's statement.


(MORE TO FOLLOW) Dow Jones Newswires

April 22, 2006 15:54 ET (19:54 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.- - 03 54 PM EDT 04-22-06