Commodity prices ease inflation worries

NEW YORK, Aug. 18 (UPI) -- Easing commodity prices have given emerging countries, like China, India and Thailand, a break from fast-rising inflation, analysts said.

Prices of oil, metals and grains have all dropped in recent weeks, amounting to "an unambiguous positive, especially in developing countries," president of the Center for Global Development Nancy Birdsall told The Wall Street Journal Monday.

Due to falling oil prices, "monetary policy doesn't have to be tightened," Tarisa Watanagase, Thailand's central-bank governor said Friday.

The price of rice, a staple for many countries, is nearly double the price from a year ago, but has fallen about 40 percent in the past two and a half months, the Journal reported.

At risk are several developing countries that depend on commodity sales.

Government spending is up on healthcare and infrastructure in Malaysia, where analysts estimate 40 percent of the government's budget is based on oil and gas revenues. Argentina, is dependent on agricultural exports. Venezuela relies on strong oil sales.

But the bottom line for many is still what prices they pay for food.

"The experts tell us the era of cheap food is still over for the foreseeable future," said Jennifer Parmelee, a spokeswoman for the U.N. World Food Program.