Central bankers urge emerging mkts to combat inflation

PARIS: US and European central bankers are intensifying pressure on counterparts in emerging-market countries to step up the fight against inflation.

Federal Reserve vice-chairman Donald Kohn on Tuesday urged countries where ���rapid��� economic growth is elevating prices to respond. Hours earlier, Bank of England governor Mervyn King said global monetary policy looks ���a little lax���.

Bank of France governor Christian Noyer said the day before that ���coordinated, resolute action��� is needed to encourage more exchange-rate flexibility as a way of tackling inflation.

The comments reflect concern among central banks in major industrialised economies that their own campaigns against inflation will be undermined by a failure of others to combat price pressures.

Demand in emerging markets is already propelling the cost of commodities such as oil, tin and corn to records.