IMF calls for response to inflation

WASHINGTON, May 9 (UPI) -- International Monetary Fund First Deputy Managing Director John Lipsky called on governments to mount a strong defense against inflation.

"To put the issue starkly, inflation risks have re-emerged as a global challenge following a long absence," Lipsky said in a speech Thursday at the Council on Foreign Relations in Washington.

Lipsky said governments should promote investments in energy and improve agricultural policies, IMF's online Survey Magazine reported.

"The humanitarian challenges of higher food prices will not disappear anytime soon," he said.

Lipsky also said it is likely high oil prices wouldn't retreat substantially and called for a demand-side response to the issue as well as increased investment in oil production.

He also called on governments to increase agricultural infrastructure and reduce biofuel subsidies.