Average inflation in emerging (and developing economies) accelerated to 8.0% in the first half of this year from an average annual rate of 4.5% in 2006. Moreover, the economic and social impact of higher inflation is especially acute in those economies as food accounts for over 30% of the consumption basket of households, compared to less than 20% in Europe or in the US.
***  BIS Review 101/2008  1  Let me now focus on the economic and financial situation in Europe and, in particular, in the euro area economy of the 15 EU countries – to become 16 next year – that use the euro as their currency.