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Trichet warns on rising global costs.

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Trichet warns on rising global costs.

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The European Central Bank has warned soaring food and commodity prices are pushing up inflation around the world.

Bank President Jean-Claude Trichet told the global economy meeting in Basel, Switzerland, that inflation was a worldwide concern.

Global food prices have risen more than forty percent this year. Commodities such as oil are also fuelling historically high inflation rates. However, central bankers admitted they may have little power to tackle the problem.

The cost of rice has doubled in the past year and the price of wheat has climbed 65 percent.

The news will create a headache for central bankers also concerned about the recent economic impact of financial market turmoil.