Leading central bank policymakers warned on Monday of the threat of resurgent inflation in fast-growing emerging economies and voiced their resolve to keep price pressures in check.

Jean-Claude Trichet, speaking as chair of talks on the global economy at a Bank for International Settlements meeting, said inflationary pressures were weaker in the developed world, although the global economy has performed better than expected.   

'The inflationary threats present as some kind of general feature in the emerging world that is something that you do not see in the advanced economies,' European Central Bank President Trichet, making clear he was speaking in his capacity as the meeting's chair, told a news conference.   

'This no time for complacency and the solid anchoring of inflation expectations is considered something that is important by all of us,' he said, adding that rises in commodity prices 'will have to be followed very, very closely.'    

Central bankers were unanimous in believing that inflation should not be allowed to get out of hand, said Trichet.
 'We are all united in purpose.'    

Recoveries from last year's global recession -- especially in emerging economies like China and India -- have bolstered price growth, but a surge in food prices is also raising concerns even in Western states where growth remains weak.

Inflation in China raced to a 28-month high of 5.1 percent in November, while euro zone inflation accelerated to 2.2 percent in December -- exceeding the ECB's target for the first time in two years.

Trichet said food price rises were an important factor.
 'The reasons that are behind the food price increases were considered important,' Trichet said. 'This is something which is particularly important in terms of impact on CPI in the emerging world.'    

'Of course this is an element of the possible threat of inflation I have mentioned.'    

Global price growth of a basket of cereals, oilseeds, dairy, meat and sugar last month hit its highest since records began in 1990, topping 2008 when a food crisis sparked riots in a number of countries.

Oil prices are also on the rise again. They have risen almost 30 percent in the last six months and are now the highest since the financial crisis erupted in late 2008.

Chile's central bank chief said commodity prices were 'very high' and it was uncertain how high they could go. 'Much depends on the reaction of supply,' Jose de Gregorio said. 'At current prices, there are a lot of opportunities for expansion of supply.'    

'It is very difficult to see that commodity producers look at these prices as long-term prices. So there must be on the demand and on the supply (side) some adjustment for prices to come to more normal levels.'    

Trichet struck a positive tone on global growth. 'At the level of the global economy, the recovery is confirmed. Growth is there, particularly I have to say impressive in the emerging economies,' he said.   

'In a number of a cases the real economy has demonstrated the capacity to behave better than the previous forecast.' - Reuters