Food price worries global

Pravin Gordhan, Minister of Finance. Photo: Matthew Jordaan.
Concerns about food and oil prices, as well as inflation, are growing globally, according to Finance Minister Pravin Gordhan.
He was taking part in a panel discussion hosted by BusinessLIVE in Johannesburg on Monday.
“The world is not getting global production and distribution systems right,” the minister added.
“More co-ordination will be needed to understand the new dynamics present.”
There were inflation concerns in both China and India, while the Bank of England has recently raised inflation concerns.
“In SA we must see how we can create conditions for the central bank to do the right thing at the right time ... when we have inflationary pressures from areas government has influence over, we can moderate pressures and this would enable the SA Reserve Bank to do the right thing.”
He stressed, however, that the central bank would maintain its independence. “We are moving into an era where inflation pressures should be taken into account.” However, he noted that all players needed to take a medium-term view.
Gordhan warned that it was important globally to bring the millions of marginalised people on board economically, “because if we don't there will be Libyan situations”.
“Democracy is about voice and participation.”
Gordhan questioned what was presently driving the oil price, adding that the issue of speculation had arisen in his discussions with players in Europe.
“There is spare capacity in Saudi Arabia, and Libya is only a small part of global production.”
According to the minister, global economies were all asking the same questions such as how more jobs could be created, how economic growth could be generated and how their economies could be made more inclusive.
Gordhan added that there were “huge possiblities” for SA and Africa because of the structural changes taking place globally. - I-Net Bridge